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Does corruption matter for sources of foreign direct investment?

Belgibayeva, Adiya and Plekhanov, A. (2016) Does corruption matter for sources of foreign direct investment? Working Paper. Birkbeck College, University of London, London, UK.

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Abstract

The paper provides a cross-country empirical analysis of the impact of corruption on foreign direct investment flows. The gravity model augmented with joint effects of corruption in the origin and destination countries determines differentiated patterns of investment flows between countries with various level of control of corruption. The estimates point towards greater investment flows between countries with good control of corruption. Moreover, if control of corruption in the destination country improves, investment flows from cleaner countries rise more than they do from countries with a higher incidence of corruption. The resulting changes in composition of investment volumes towards more investment from cleaner countries may further reinforce the strengthening of economic and political institutions that keep corruption in check.

Metadata

Item Type: Monograph (Working Paper)
Additional Information: ISSN 1745-8587: BWPEF 1604
Keyword(s) / Subject(s): corruption, economic institutions, foreign direct investment, gravity model
School: Birkbeck Faculties and Schools > Faculty of Business and Law > Birkbeck Business School
Depositing User: Administrator
Date Deposited: 20 May 2016 08:31
Last Modified: 16 Apr 2025 05:05
URI: https://eprints.bbk.ac.uk/id/eprint/15260

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