Hakkala, Katariina Nilsson; Norbäck, Pehr-Johan; … - In: The Review of Economics and Statistics 90 (2008) 4, pp. 627-642
We examine the effect of corruption on foreign direct investment (FDI). Starting out from the theory of FDI, we show that corruption can have different effects on horizontal investments, which are primarily aimed at sales to the local market, compared with vertical investments, which are made to...