S-Space Graduate School of International Studies (국제대학원) Dept. of International Studies (국제학과) Journal of International and Area Studies (JIAS) Journal of International and Area Studies vol.17 (2010)
The Impact of Corruption on a Countrys FDI Attractiveness: A Panel Data Analysis, 1984-2004
- Woo, Jung-Yeop
- Issue Date
- Institute of International Affairs, Graduate School of International Studies, Seoul National University
- Journal of International and Area Studies, Vol.17 No.2, pp. 71-91
- 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.
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