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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 …
Persistent link: https://www.econbiz.de/10010320077
We find that new states are perceived to be more corrupt even though businesses do not report more bribery in newer states. This is suggestive of an unearned, and likely high, reputational cost to being a new state. These findings hold over a number of specifications that include additional...
Persistent link: https://www.econbiz.de/10011928041
In this paper, the effect of corruption on foreign direct investment (FDI) flows is analyzed. The literature is thus … far divided regarding the effects of corruption: One hypothesis argues that corruption greases the wheels of government … corruption measure from the World Governance Indicators of the World Bank is compiled. To further analyze the effects of …
Persistent link: https://www.econbiz.de/10014501925
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Persistent link: https://www.econbiz.de/10010334983
This paper uses affiliate level data from Swedish multinationals to examine the impact of tax treaties on both overall affiliate sales and the composition of those sales. In line with previous results, we find little evidence for an effect of treaties on the level of total sales. We do, however,...
Persistent link: https://www.econbiz.de/10010320293
To serve foreign markets, firms can either export or set up a local subsidiary through horizontal Foreign Direct Investment (FDI). The conventional proximity-concentration theory suggests that FDI substitutes for trade if distance between countries is large, while exports become more important...
Persistent link: https://www.econbiz.de/10010325651
Foreign investments are in the focus of most governments around the world. In order to be able to set a policy agenda which is successful in promoting FDI, it is necessary to understand their detfirminants. This paper examines whether and to what extent sound institutions and the degree of...
Persistent link: https://www.econbiz.de/10010313411
This paper investigates how multinational firms choose the capital structure of their foreign affiliates in response to political risk. We focus on two choice variables, the leverage and the ownership structure of the foreign affiliate, and we distinguish different types of political risk, such...
Persistent link: https://www.econbiz.de/10010298749
, Latvia, Lithuania, Poland, Sweden, and Russia. We investigate foreign direct investment (FDI) flows from 1995 to 2010 to …
Persistent link: https://www.econbiz.de/10012037621