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Does Foreign Direct Investment Decrease Corruption?

Author

Listed:
  • Felipe Larraín

    (Instituto de Economía)

  • José Tavares

Abstract

This paper assesses the effect of openness on corruption, using foreign direct investment (FDI) inflows as a measure of openness, after trade intensity is accounted for. We use a broad cross section of countries over the period 1970 to 1994 and address th

Suggested Citation

  • Felipe Larraín & José Tavares, 2004. "Does Foreign Direct Investment Decrease Corruption?," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 41(123), pages 217-230.
    • Handle: RePEc:ioe:cuadec:v:41:y:2004:i:123:p:217-230
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    References listed on IDEAS

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    More about this item

    Keywords

    Foreign Direct Investment; Corruption; International Trade; Istrumental Variables;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F30 - International Economics - - International Finance - - - General
    • H10 - Public Economics - - Structure and Scope of Government - - - General

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