Corruption as an Obstacle or an Incentive to FDI Flows: A Panel Data Analysis
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F02819180%3A_____%2F25%3A%230000132" target="_blank" >RIV/02819180:_____/25:#0000132 - isvavai.cz</a>
Result on the web
<a href="https://mnje.com/sites/mnje.com/files/currentissue/Komplet%20MNJE%20Vol.%2021,%20No.%203.pdf#page=19" target="_blank" >https://mnje.com/sites/mnje.com/files/currentissue/Komplet%20MNJE%20Vol.%2021,%20No.%203.pdf#page=19</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.14254/1800-5845/2025.21-3.2" target="_blank" >10.14254/1800-5845/2025.21-3.2</a>
Alternative languages
Result language
angličtina
Original language name
Corruption as an Obstacle or an Incentive to FDI Flows: A Panel Data Analysis
Original language description
Corruption is a ubiquitous societal problem that significantly influences cor porate investment decisions in the international economic environment of to day. Considerable attention is paid primarily to the economic effects of cor ruption. Its influence on foreign direct investment is one of the topics investi gated. Some studies show that corruption deters foreign investors from mak ing known investments in a country. However, some studies prove that this may not be the case at all and that corruption can, on the contrary, attract companies from certain countries to invest. This paper aims to explore in depth the multifaceted impact of corruption on foreign direct investment and dissect its role in corporate strategic choice, risk management, and sustain able development. Through the comprehensive use of literature research, case analysis, and theoretical discussion, the relevant multiple linear regres sion model is established. This paper adopts the corruption perception index published by Transparency International as the core independent variable and uses the panel data of 28 countries or regions from 1995 to 2022 to estimate the model and verify the relevant hypotheses. The results show that the effect of corruption on FDI is related to the level of corruption. When the corruption level is low, the breeding of corruption has a significant inhibitory effect on foreign investment, but when the corruption level is high, the in crease in corruption perception does not show a significant linear relation ship with foreign direct investment. By delving into the impact of corruption on corporate investment decisions, this paper is expected to provide business managers, policymakers, and academic researchers with practical insights and promote a deeper understanding of this complex topic.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50204 - Business and management
Result continuities
Project
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Continuities
N - Vyzkumna aktivita podporovana z neverejnych zdroju
Others
Publication year
2025
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Montenegrin Journal of Economics
ISSN
1800-5845
e-ISSN
1800-6698
Volume of the periodical
21
Issue of the periodical within the volume
3
Country of publishing house
ME - MONTENEGRO
Number of pages
13
Pages from-to
19-31
UT code for WoS article
001538966300002
EID of the result in the Scopus database
2-s2.0-105008522541