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The Impact of Corruption on FDI: An Application of Efficient Grease Hypothesis to EU Countries

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Author Info
Elif Kardesler (Department of Economics, Izmir University of Economics)
Ý. Hakan Yetkiner () (Department of Economics, Izmir University of Economics)

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Abstract

This paper empirically examines the impact of corruption on FDI in European Union countries, including candidate countries. Our aim is to verify whether Efficient Grease Hypothesis does hold in the case of the EU. Contrary to the Hypothesis, we find that corruption has a negative impact on FDI.

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File URL: http://eco.ieu.edu.tr/wp-content/wp0902.pdf
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Publisher Info
Paper provided by Izmir University of Economics in its series Working Papers with number 0902.

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Length: 16 pages
Date of creation: Jan 2009
Date of revision:
Handle: RePEc:izm:wpaper:0902

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Web page: http://eco.ieu.edu.tr
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Related research
Keywords: FDI; Corruption; Efficient Grease Hypothesis; OLS;

Find related papers by JEL classification:
C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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This page was last updated on 2009-11-23.

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