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The Impact of Corruption on a Country’s FDI Attractiveness: A Panel Data Analysis, 1984-2004

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Authors
Woo, Jung-Yeop
Issue Date
2010-12
Publisher
Institute of International Affairs, Graduate School of International Studies, Seoul National University
Citation
Journal of International and Area Studies, Vol.17 No.2, pp. 71-91
Keywords
CorruptionFDILevel of DemocracyEconomic Growth
Abstract
Some argue that foreign investors would not be attracted to countries where uncertainty induced by arbitrariness in corruption, is pervasive. On the other hand, it is contended that MNEs have been seeking the investment opportunities where they can exploit rent benefits, so they would not mind paying a small price for the big gain. Consequentially, theory cannot provide us with the dominant framework to hypothesize the relationship between the corruption and the FDI attractiveness of host countries. Empirical results of this study suggest that corruption generally causes a harmful effect on attracting FDI.
ISSN
1226-8550
Language
English
URI
http://hdl.handle.net/10371/96495
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Graduate School of International Studies (국제대학원)Dept. of International Studies (국제학과)Journal of International and Area StudiesJournal of International and Area Studies vol.17 (2010)
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