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Offshoring of Services and Corruption: Do Firms Escape Corrupt Countries?

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  • Karpaty, Patrik

    () (Department of Business, Economics, Statistics and Informatics)

  • Gustavsson Tingvall, Patrik

    () (Stockholm School of Economics and Centre of Excellence for Science and Innovation Studies (CESIS))

Abstract

In this paper, we analyze how the offshoring of services by Swedish firms is affected by corruption in target economies. The results suggest that firms avoid corrupt countries and that corruption reduces the amount of offshored services. In addition, the sensitivity to corruption is highest for poor countries, and large and internationalized firms are the ones that tend to be the most sensitive to corruption.

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Bibliographic Info

Paper provided by Örebro University, School of Business in its series Working Papers with number 2011:2.

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Length: 22 pages
Date of creation: 18 Jan 2011
Date of revision: 28 May 2012
Handle: RePEc:hhs:oruesi:2011_002

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Postal: Örebro University School of Business, SE - 701 82 ÖREBRO, Sweden
Phone: 019-30 30 00
Fax: 019-33 25 46
Web page: http://www.oru.se/Institutioner/Handelshogskolan-vid-Orebro-universitet/
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Keywords: Corruption; Services; Offshoring; Gravity model; Firm level data;

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