We analyze empirically whether the emergence of China as a large recipient of FDI has affected the amount of FDI … find a substitution from Latin American inward FDI to China, when other relevant factors are taken into account. However …, concentrating on the last few years (from 1995 to 2001), when FDI boomed worldwide and negotiations for China’s WTO membership …

country and industry levels and generally concentrate on overall FDI flows without distinguishing among different modes of FDI …. Empirical studies focusing on aggregated inward and outward FDI flows, especially at the country level, implicitly assume that … the same factors motivate all modes of FDI. To the extent that this is not the case, many empirical studies of overall FDI …

and performance of firms, we find that: i) corruption reduces FDI inflows and attracts lower quality investment in terms … of governance standards; ii) in misgoverned settings, FDI firms may magnify the problems of state capture and procurement … kickbacks, while paying a lower overall bribe burden than domestic firms; iii) FDI firms undertake those forms of corruption …