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Does Anti-Bribery Enforcement Deter Foreign Investment?

Author

Listed:
  • Brad Graham

    (Department of Economics, Grinnell College)

  • Caleb Stroup

    (Department of Economics, Davidson College)

Abstract

We hand-collect data on individual FCPA enforcement actions initiated by the U.S. Department of Justice and use them in a panel difference-in-difference estimator to provide the first systematic empirical evidence that anti-bribery enforcement is followed by a reduction in U.S. fixed capital investments in countries targeted by enforcement actions. Publication Status: Published in Applied Economics Letters, 2016, 23(1):63-67.

Suggested Citation

  • Brad Graham & Caleb Stroup, 2015. "Does Anti-Bribery Enforcement Deter Foreign Investment?," Working Papers 15-04, Davidson College, Department of Economics.
  • Handle: RePEc:dav:wpaper:15-04
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    References listed on IDEAS

    as
    1. Choi, In, 2001. "Unit root tests for panel data," Journal of International Money and Finance, Elsevier, vol. 20(2), pages 249-272, April.
    2. Caleb Stroup, 2017. "International Deal Experience And Cross-Border Acquisitions," Economic Inquiry, Western Economic Association International, vol. 55(1), pages 73-97, January.
    3. Alvaro Cuervo-Cazurra, 2008. "The effectiveness of laws against bribery abroad," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(4), pages 634-651, June.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Brada, Josef C. & Drabek, Zdenek & Mendez, Jose A. & Perez, M. Fabricio, 2019. "National levels of corruption and foreign direct investment," Journal of Comparative Economics, Elsevier, vol. 47(1), pages 31-49.
    2. Kuvvet, Emre, 2021. "Anti-corruption courts and foreign direct investments," International Review of Economics & Finance, Elsevier, vol. 72(C), pages 573-582.

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    More about this item

    Keywords

    Foreign Corrupt Practices Act; multinational firms; cross-border mergers; foreign direct investment; anti-bribery legislation;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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