Analysis of dynamic relationship between corruption and foreign direct investment

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F25940082%3A_____%2F17%3AN0000020" target="_blank" >RIV/25940082:_____/17:N0000020 - isvavai.cz</a>

Alternative codes found

RIV/61384399:31120/17:00050719 RIV/68407700:21240/17:00314660

Result on the web

<a href="http://car.aauni.edu/wp-content/uploads/ANTIcorruptionfraud-Conference-Proceedings-2017-PUB.pdf" target="_blank" >http://car.aauni.edu/wp-content/uploads/ANTIcorruptionfraud-Conference-Proceedings-2017-PUB.pdf</a>

DOI - Digital Object Identifier

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Result language

angličtina

Original language name

Analysis of dynamic relationship between corruption and foreign direct investment

Original language description

This text builds on our seminary work about the contra-intuitively weak relation between FDI and corruption. The mainstream economic thinking suggests improving transparency leads to increased FDI inflow. While the economic environment without corruption is certainly value per-se, we find that given the nature of multinational corporations and FDI, it does not necessarily translate to higher FDI. Multinational corporations depend on arbitrary political decisions of home as well as host governments to offset their extra costs from doing business in multiple socio-economic environments of various countries, thus somehow increased level of corruption might be an outcome of this relationship. Following our previous theoretical research as well as of others, mainly Dunning’s eclectic model and Vernon’s obsolescing bargain model this paper finds no significant dynamic relationship between corruption and foreign direct investment. We base our conclusions on the results of a parametric test consisting of two panel Granger causality tests within a dynamic panel model framework estimated with the help of Blundell-Bond (modified Arellano-Bond) estimator, applied to data from Transparency International, the World Bank, and the International Monetary Fund for 154 countries and the years 1980–2015.

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

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OECD FORD branch

50202 - Applied Economics, Econometrics

Project

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Continuities

N - Vyzkumna aktivita podporovana z neverejnych zdroju

Publication year

2017

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection

ANTIcorruption & fraud: DETECTION & MEASUREMENT: Prague, April 7, 2017, Anglo-American University: Proceedings of the international conference

ISBN

978-80-906585-2-3

ISSN

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e-ISSN

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Number of pages

25

Pages from-to

40-64

Publisher name

Anglo-americká vysoká škola, z.ú.

Place of publication

Praha

Event location

Praha

Event date

Apr 7, 2017

Type of event by nationality

WRD - Celosvětová akce

UT code for WoS article

000588194600002