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 …

This paper adds to the limited number of studies analysing the relationship between host country corruption and FDI … inflows. A model describes the incentives foreign MNEs and host country bureaucrats have for engaging in corruption and shows … how corruption increases the MNE costs of operations in the host country. The model predicts that the costs caused by …

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 …

economies. We focus on the corruption distance between the home and host countries as a crucial part of institutional quality …. Our results confirm that FDI flows are higher when they come from countries with low differences in corruption with Turkey …. Conversely, FDI flows are negatively affected when there exists a large difference in corruption between the investing country …

This paper documents that standard measures of corruption based on the perceptions of experts and opinion surveys and … corruption is in a country. We then show that while perceptions of corruption are significantly associated with the amount of … zero in a foreign country (greenfield investment) is significantly associated with the experience of corruption while …

The present paper argues that the effect of corruption on foreign ownership is not necessarily linear and depends on … the level of host corruption. So long as the expected returns from foreign investments exceed its expected costs, higher … host corruption will be associated with higher foreign ownership. However, costs may exceed or exactly compensate the …

Purpose – The purpose of this paper is to empirically investigate the impact of corruption on foreign direct investment … evaluate the impact of corruption on FDI activities.Findings – The empirical results illustrate that corruption is a … components of FDI – greenfield investment and cross-border M&As, are separately examined. Specifically, while corruption …

, corruption of public officers, inefficiency of the labour judicial system). Provinces with better access to neighbouring … subjects, fewer corruption episodes and lower presence of organized crime should also be associated with higher flows of FDIs … conducted adopting fixed effects methodologies (including a Mundlak procedure on a Negative Binomial random effects estimation …