The Effects of Corruption on FDI Inflows
Year: 2009
Type: article
Abstract: This article intends to answer the following question: Does a corrupt host country receive less or more FDI inflows after controlling for other determinants of FDI location?Our results show that the corruption level in the host country has an adverse effect on FDI inflows: a one-point increase in the corruption level leads to a reduction in per capita FDI inflows by about 11 percent. However, after controlling for other characteristics of the host country such as the quality of institutions, the negative effects of corruption disappear and sometimes it becomes positive but statistically insignificant.
Author: Ali Al Sadig
Institution: Saudi Arabian Monetary Authority
Language: English
Subfield: Sociology and Political Science
Field: Social Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1505600787