Globalization creates investment opportunities for enterprises worldwide. FDI is one of the traditional options to expand into international markets. According to Dunning＇s ownership, location, and internationalizati...Globalization creates investment opportunities for enterprises worldwide. FDI is one of the traditional options to expand into international markets. According to Dunning＇s ownership, location, and internationalization paradigm FDI location is driven by the search for markets, resources, efficiency, and strategic assets. Corruption can be considered as a significant factor of the attractiveness of a location and can affect also other OLI conditions. Most of the theoretical literature as well as case study and microeconomic evidence support the notion that corruption negatively impacts inward FDI flows and growth. However the macroeconomic evidence is not so unambiguous Some macro-studies do not detect any significant negative relationship between corruption and FDI. The aim of the paper is to analyze the relationship mechanism between corruption and FDI and to evaluate the impact of the host country corruption on inward FDI flows. The results of the empiric analysis presented in the paper provide evidence of the significant negative impact of host country corruption on inward FDI. One of the main benefits from the decrease of corruption level is quantitatively valued as an additional inward flow of the foreign capital in the economy. The econometric analysis is based on panel dataset that includes data for 178 economies during the period of 2004 to 2009. The Transparency International Corruption Perceptions Index is used as a proxy for host country corruption level展开更多
文摘Globalization creates investment opportunities for enterprises worldwide. FDI is one of the traditional options to expand into international markets. According to Dunning＇s ownership, location, and internationalization paradigm FDI location is driven by the search for markets, resources, efficiency, and strategic assets. Corruption can be considered as a significant factor of the attractiveness of a location and can affect also other OLI conditions. Most of the theoretical literature as well as case study and microeconomic evidence support the notion that corruption negatively impacts inward FDI flows and growth. However the macroeconomic evidence is not so unambiguous Some macro-studies do not detect any significant negative relationship between corruption and FDI. The aim of the paper is to analyze the relationship mechanism between corruption and FDI and to evaluate the impact of the host country corruption on inward FDI flows. The results of the empiric analysis presented in the paper provide evidence of the significant negative impact of host country corruption on inward FDI. One of the main benefits from the decrease of corruption level is quantitatively valued as an additional inward flow of the foreign capital in the economy. The econometric analysis is based on panel dataset that includes data for 178 economies during the period of 2004 to 2009. The Transparency International Corruption Perceptions Index is used as a proxy for host country corruption level
