Analysis of dynamic relationship between corruption and foreign direct investment

Kód výsledku v 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>

Nalezeny alternativní kódy

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

Výsledek na webu

<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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Jazyk výsledku

angličtina

Název v původním jazyce

Analysis of dynamic relationship between corruption and foreign direct investment

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

Analysis of dynamic relationship between corruption and foreign direct investment

Popis výsledku anglicky

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.

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

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Návaznosti

N - Vyzkumna aktivita podporovana z neverejnych zdroju

Rok uplatnění

2017

Kód důvěrnosti údajů

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

Název statě ve sborníku

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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Počet stran výsledku

25

Strana od-do

40-64

Název nakladatele

Anglo-americká vysoká škola, z.ú.

Místo vydání

Praha

Místo konání akce

Praha

Datum konání akce

7. 4. 2017

Typ akce podle státní příslušnosti

WRD - Celosvětová akce

Kód UT WoS článku

000588194600002