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Foreign Investment And Corruption: Are They Really Related?

Author

Listed:
  • Ilya BYSTROV

    (University of Buraimi (UoB), Sultanate of Oman)

Abstract

The article studies dependence between the level of corruption and volume of direct foreign investment a country can enjoy. Upon testing several hypothesis (the basic - there is a correlation between the level of corruption and volume of direct foreign investments in the same year; and additional assumptions - there is a time lag between the level of corruption and volume of investment and direct foreign investment can "predict" the level of corruption in several years) the meaningful relation between the level of corruption and volume of direct foreign investment has not been revealed.

Suggested Citation

  • Ilya BYSTROV, 2013. "Foreign Investment And Corruption: Are They Really Related?," STUDIA UNIVERSITATIS PETRU MAIOR SERIES OECONOMICA, Petru Maior University, Faculty of Economics Law and Administrative Sciences, vol. 1, pages 13-21, December.
    • Handle: RePEc:pmu:oecono:v:1/2013:y:2013:p:13-21
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    References listed on IDEAS

    as
    1. Shang-Jin Wei, 2000. "How Taxing is Corruption on International Investors?," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 1-11, February.
    2. Nathan M. Jensen, 2008. "Introduction to Nation-States and the Multinational Corporation: A Political Economy of Foreign Direct Investment," Introductory Chapters, in: Nation-States and the Multinational Corporation: A Political Economy of Foreign Direct Investment, Princeton University Press.
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    More about this item

    Keywords

    International investment; corruption;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption

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