Is There a Relationship Between Transparency in Economic and Political Systems and Foreign Direct Investment Flows?
Abstract: By using information for a vast number of countries, concerning inward Foreign Direct Investment (FDI) performance and perceived level of corruption, the paper analyzes how transparency, as a reverse measure of corruption, influences FDI. This is done by a fuzzy logic approach in order to determine conceivable clusters in the FDI-transparency space. In two different periods, the use of fuzzy clustering techniques reveals the existence of two well-defined clusters: one is formed by the countries having high-level corruption, where, indeed, transparency is positively correlated, in a significant way, to FDI, and the other is formed by the countries having low-level corruption, where the influence of corruption on FDI is not so evident.
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Bibliographic InfoArticle provided by IUP Publications in its journal The IUP Journal of Applied Economics.
Volume (Year): VIII (2009)
Issue (Month): 2 (March)
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- Amar Iqbal Anwar & Mazhar Mughal, 2012. "Economic Freedom and Indian Outward Foreign Direct Investment: An Empirical Analysis," Economics Bulletin, AccessEcon, vol. 32(4), pages 2991-3007.
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