Does Foreign Direct Investment Decrease Corruption?
| Autor: | Felipe Larraín B., José Tavares |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2004 |
| Předmět: |
Corruption
media_common.quotation_subject Instrumental variable jel:F10 International Trade Foreign direct investment International economics jel:F30 Foreign Direct Investment jel:F13 Causality A share Gross domestic product jel:H10 Foreign Direct Investment Corruption International Trade Istrumental Variables Cultural distance Openness to experience Economics Instrumental Variables General Economics Econometrics and Finance media_common |
| Zdroj: | Cuadernos de economía, Volume: 41, Issue: 123, Pages: 199-215, Published: AUG 2004 Scopus-Elsevier Cuadernos de economía v.41 n.123 2004 SciELO Chile CONICYT Chile instacron:CONICYT CIÊNCIAVITAE |
| Popis: | 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 the issue of causality with a new set of instrumental variables relying on geographical and cultural distance between the FDI exporting and recipient countries. The economics literature has demonstrated that higher corruption levels discourage FDI. Here we study the reverse link, that is, how foreign direct investment impacts corruption. We find that FDI as a share of GDP is significantly associated with lower corruption levels, irrespective of import intensity levels. The quantitative impact of FDI on corruption appears to be of the same order of magnitude as that of per capita GDP. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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