With complementary Chinese data sets and alternative corruption measures, we explore the consequences of corruption. Adopting a novel approach we provide evidence that corruption can have both, positive and negative effects, on economic development. The overall impact of corruption might be the...

Recent empirical studies claim that, in addition to levels of corruption, investors are deterred by its unpredictability. I claim instead that it is petty corruption that deters investors. I employ seven subcomponents of corruption for a sample of 102 countries that appear in the 2003 Global...

Prevailing work argues that foreign investment reduces corruption, either by competing down monopoly rents or diffusing best practices of corporate governance. We argue that this theory is too broad-brush and that the empirical work testing it is too heavily drawn from aggregations of total...

The mechanism of Investor-State Dispute Settlement (ISDS) allows private foreign investors to challenge government measures before an ad hoc international arbitral tribunal. ISDS has been in existence for a long time. Yet recently this mechanism has proven very controversial, notably in the...

This articles examines 2 meanings of the term “rule of law;” the first being absence of lawlessness, and the second being the full range of laws, enforcement, that is described in the World Justice Project. Using those concepts, the article then looks at whether the rule of law, based upon...

We model the relationship between foreign direct investment (FDI) and the level of corruption in multinational firms' (MCNs') home and host countries. There are two effects of corruption. The first is that host-country corruption reduces FDI by increasing foreign firms' costs. The second effect,...

This paper empirically investigates the influence of corruption, bureaucratic quality and government stability on inward Foreign Direct Investment (FDI) to major SAARC nations including Bangladesh, India, Pakistan and Sri Lanka over the period of 1985-2008. Owing to the long-term relationship...

To advance understanding of the entrepreneurship process in developing economies, this article evaluates whether registered enterprises that initially avoid the cost of registration, and focus their resources on overcoming other liabilities of newness, lay a stronger foundation for subsequent...