We examine the effect of corruption on foreign direct investments (FDI). Starting out from the theory of FDI, we show … than vertical investments deterred by corruption. We are also able to establish a causal effect of corruption on FDI … that corruption can have different effects on horizontal investments, which are primarily aimed at sales to the local …

lowers opportunities for corrupt behavior. We test this nonlinear relationship between FDI and corruption in an instrumental … variable two-stage least squares setting. The results indicate that FDI is indeed associated with higher levels of corruption …We analyze how one of the central drivers of globalization, foreign direct investment (FDI), relates to the prevalence …

This study adds to largely non-existent literature on corruption and foreign direct investment (FDI) in natural … 2020. We find that higher levels of corruption are associated with lower levels of FDI in natural resources, supporting the … likely to use the prevalence of corruption to disregard laws to attract greater FDI in natural resources to compensate for …

corruption, unstable economic policies, weak and poorly enforced property rights, and inefficient government institutions. Our … expect 40 percent increase in FDI from a one point increase in their transparency ranking. Pari passu, non …-transparent policies translate into lower levels of FDI and hence lower levels of welfare and efficiency in the host country's economy. A …

foreign direct investment (FDI) and corruption. The prevailing literature has produced confused and contradictory results on … this vital relationship due to errors in their measurement of corruption which are correlated with FDI inflows. When a less … procedures in Vietnam. The prevalence of corruption, however, is not associated with inflows of FDI. On the contrary, one measure …

This paper disentangles the effects of corruption on entry mode decision by carrying out an empirical analysis with … supports most of these propositions: (i). Corruption has a direct negative impact on greenfield investments and a weak positive … impact on M&As. (ii). There are complex, asymmetric, secondary effects of corruption on the mode of entry. (iii …

We model the relationship between foreign direct investment (FDI) and the level of corruption in multinational firms …' (MCNs') home and host countries. There are two effects of corruption. The first is that host-country corruption reduces FDI … countries with similar corruption levels. We test the model using bilateral FDI flows and find that both effects are …

45 countries from 1997 to 2007, we find that corruption distance adversely affects the volume of FDI to be invested in a … host country. However, we do not find statistical evidence that corruption distance influences FDI's decision on whether to …We study the effects of “corruption distance,” defined as the difference in corruption levels between country pairs, on …

We analyse the effect of corruption on FDI. Using FDI outflows from a sample of East European transition economies that … the inertia of past investments. Our model separates the effects of corruption on FDI location decisions and on the amount … that country. The relationship between home country corruption and FDI is non-monotonic, with an inverse U shape where both …

. African leaders should therefore institute policies to control corruption in order to boost foreign investors’ confidence in …