Corruption as an Entry Incentive and Exit Barrier for Foreign Direct Investment (FDI)

The paper estimates the effect of corruption in the host country on flows of direct foreign investment (FDI), input and output. The objective is to demonstrate if corruption is a vehicle that attracts FDI or, on the contrary, it is a mechanism that inhibits these capitals. A panel methodology System...

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Detalles Bibliográficos
Autores: Flores Márquez, Héctor, Neme Castillo, Omar
Tipo de recurso: artículo
Fecha de publicación:2021
País:España
Institución:Universidad de Huelva (UHU)
Repositorio:Arias Montano. Repositorio Institucional de la Universidad de Huelva
Idioma:inglés
OAI Identifier:oai:ariasmontano.uhu.es:10272/19835
Acceso en línea:http://hdl.handle.net/10272/19835
Access Level:acceso abierto
Palabra clave:Income Levels
Corruption
Outward Foreign Direct Investment
Inward Foreign Direct Investment
Corruption Distance
Niveles de Ingresos
Distancia de Corrupción
Corrupción
Entrada de Inversión Extranjera Directa
Salida de Inversión Extranjera directa
Descripción
Sumario:The paper estimates the effect of corruption in the host country on flows of direct foreign investment (FDI), input and output. The objective is to demonstrate if corruption is a vehicle that attracts FDI or, on the contrary, it is a mechanism that inhibits these capitals. A panel methodology System of Generalized Methods of Moments (Sys-GMM) is used for 126 countries classified by the income level for the 1996-2016 period. It is shown that corruption has the effect of attracting inward-FDI and preventing outward-FDI, having a positive effect on net FDI. There is also a significant difference in the sensitivity of FDI to corruption among groups of countries