Hakkala, Katariina; Norbäck, Pehr-Johan; Svaleryd, Helena - Institutet för Näringslivsforskning (IFN) - 2005
We examine the effect of corruption on foreign direct investments. Our model shows that corruption may have different … market. Using Swedish firm-level data, we find that affiliate local sales decrease with corruption, while affiliate exports … increase. Finally, corruption has a negative effect on the probability that a foreign firm will invest in a country. These …