Corruption and Foreign Direct Investments: A Panel Analysis

A Wijeweera; BE Dollery

Corruption and Foreign Direct Investments: A Panel Analysis

A Wijeweera
, BE Dollery

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

Abstract

This paper investigates the effects of corruption on foreign direct investment (FDI) inflows controlling for other relevant determinants using a panel data approach for 45 countries over 1997-2004. While economic theory suggests that corruption should discourage FDI, many notably corrupt countries receive substantial FDI - an anomaly worthy of investigation. In common with other empirical work, we find no statistically significant impact of corruption on FDI. This suggests that policies designed to attract additional foreign FDI should focus on corporate income taxes and other determinants of investment rather than on the intractable problem of reducing the level of corruption.

Original language	English
Title of host publication	Proceedings of the 35th Australian Conference of Economists (ACE)
Editors	Jeffrey Petchey, Garry MacDonald
Place of Publication	Curtin, Australia
Publisher	Economic Society of Australia Inc
Pages	1-25
ISBN (Print)	1740675010
Publication status	Published - 2006
Event	ACE 2006: 35th Annual Australian Conference of Economists - Curtin University of Technology, Perth, Australia Duration: 25 Sept 2006 → 27 Sept 2006

Conference

Conference	ACE 2006: 35th Annual Australian Conference of Economists
City	Perth, Australia
Period	25/09/06 → 27/09/06

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 10 Reduced Inequalities

Keywords

Drama, Theatre and Performance Studies

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https://hdl.handle.net/1959.11/1017

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Cite this

@inproceedings{abe1094f7d334346820278246108e019,

title = "Corruption and Foreign Direct Investments: A Panel Analysis",

abstract = "This paper investigates the effects of corruption on foreign direct investment (FDI) inflows controlling for other relevant determinants using a panel data approach for 45 countries over 1997-2004. While economic theory suggests that corruption should discourage FDI, many notably corrupt countries receive substantial FDI - an anomaly worthy of investigation. In common with other empirical work, we find no statistically significant impact of corruption on FDI. This suggests that policies designed to attract additional foreign FDI should focus on corporate income taxes and other determinants of investment rather than on the intractable problem of reducing the level of corruption.",

keywords = "Drama, Theatre and Performance Studies",

author = "A Wijeweera and BE Dollery",

year = "2006",

language = "English",

isbn = "1740675010",

pages = "1--25",

editor = "Jeffrey Petchey and Garry MacDonald",

booktitle = "Proceedings of the 35th Australian Conference of Economists (ACE)",

publisher = "Economic Society of Australia Inc",

note = "ACE 2006: 35th Annual Australian Conference of Economists ; Conference date: 25-09-2006 Through 27-09-2006",

}

Wijeweera, A & Dollery, BE 2006, Corruption and Foreign Direct Investments: A Panel Analysis. in J Petchey & G MacDonald (eds), Proceedings of the 35th Australian Conference of Economists (ACE). Economic Society of Australia Inc, Curtin, Australia, pp. 1-25, ACE 2006: 35th Annual Australian Conference of Economists, Perth, Australia, 25/09/06. <https://hdl.handle.net/1959.11/1017>

Corruption and Foreign Direct Investments: A Panel Analysis. / Wijeweera, A; Dollery, BE.
Proceedings of the 35th Australian Conference of Economists (ACE). ed. / Jeffrey Petchey; Garry MacDonald. Curtin, Australia: Economic Society of Australia Inc, 2006. p. 1-25.

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

TY - GEN

T1 - Corruption and Foreign Direct Investments

T2 - ACE 2006: 35th Annual Australian Conference of Economists

AU - Wijeweera, A

AU - Dollery, BE

PY - 2006

Y1 - 2006

N2 - This paper investigates the effects of corruption on foreign direct investment (FDI) inflows controlling for other relevant determinants using a panel data approach for 45 countries over 1997-2004. While economic theory suggests that corruption should discourage FDI, many notably corrupt countries receive substantial FDI - an anomaly worthy of investigation. In common with other empirical work, we find no statistically significant impact of corruption on FDI. This suggests that policies designed to attract additional foreign FDI should focus on corporate income taxes and other determinants of investment rather than on the intractable problem of reducing the level of corruption.

AB - This paper investigates the effects of corruption on foreign direct investment (FDI) inflows controlling for other relevant determinants using a panel data approach for 45 countries over 1997-2004. While economic theory suggests that corruption should discourage FDI, many notably corrupt countries receive substantial FDI - an anomaly worthy of investigation. In common with other empirical work, we find no statistically significant impact of corruption on FDI. This suggests that policies designed to attract additional foreign FDI should focus on corporate income taxes and other determinants of investment rather than on the intractable problem of reducing the level of corruption.

KW - Drama, Theatre and Performance Studies

UR - http://www.business.curtin.edu.au/files/Wijeweera_Dollery.pdf

UR - http://www.cbs.curtin.edu.au/index.cfm?objectid=EB923F52-B681-2967-0B28C1FCCFD7CC5D

M3 - Conference contribution

SN - 1740675010

SP - 1

EP - 25

BT - Proceedings of the 35th Australian Conference of Economists (ACE)

A2 - Petchey, Jeffrey

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PB - Economic Society of Australia Inc

CY - Curtin, Australia

Y2 - 25 September 2006 through 27 September 2006

ER -

Corruption and Foreign Direct Investments: A Panel Analysis

Abstract

Conference

UN SDGs

Keywords

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