Corruption has become endemic in many African countries and is difficult to eradicate completely; therefore, reducing … corruption to a tolerable level that will not deter foreign investors must be the aspiration of all political leaders and … stakeholders. This study tries to identify the level of corruption that is tolerable to foreign investors, which is referred to as …

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 …

resource-rich countries, the decision of host governments to expropriate these investments, and the level of corruption. Higher … production. Moreover, resource production leads to high levels of corruption. Our theoretical results are confirmed by … estimations of a simultaneous equation model for 50 resource-rich countries in which we endogenize expropriation risk, corruption …