and V. Sarafidis (2006). Number of times cited according to CrossRef: Does Corruption Act as a Deterrent to Foreign Direct Investment in Developing Countries?. pp 95-124 | Determinants of foreign direct investment and volatility in South East Asian economies. An audit of received international business corruption literature for logic, consistency, completeness of coverage. Impacts of Voice and Accountability upon Innovation in Pakistan: Evidence from ARDL and Maki Cointegration Approaches. However, the relationship between FDI and these country characteristics has not been studied. Sin embargo, el África subsahariana ha quedado rezagada y sólo ha atraído, en promedio, un 2% de la IED mundial. Agrawal, G. (2015). If you do not receive an email within 10 minutes, your email address may not be registered, Enter your email address below and we will send you your username, If the address matches an existing account you will receive an email with instructions to retrieve your username, By continuing to browse this site, you agree to its use of cookies as described in our, I have read and accept the Wiley Online Library Terms and Conditions of Use. Secondary data for 20 years for 14 Sub-Saharan Africa countries was collected from the World Bank’s World Development Indicator database, the World Governance Indicator and political Risk Services International’s Country Risk Guide database for the study. Corruption is one of the disincentives for foreign investment. Beugelsdijk, R.S. Big 4 and audit fees in the context of adopting International Financial Reporting Standards. hypothesis, i.e., corruption facilitates FDI inflows in Africa. Location Strategies of Foreign Investors in China: Evidence from Japanese Manufacturing Multinationals. Critical perspectives on international business. Impact of corruption . Anyanwu, J.C. (2012). De Gregorio, and J.W. and you may need to create a new Wiley Online Library account. International Economics and Economic Policy. Part of Springer Nature. The Impact of Foreign Direct Investment on Economic Growth in Jordan. Please check your email for instructions on resetting your password. Local Economy: The Journal of the Local Economy Policy Unit. Deciding to Bribe: a Cross-Level Analysis of Firm and Home Country Influences on Bribery Activity. This paper examines the impact of foreign direct investment (FDI) on economic growth in Africa and presents estimations based on panel data of 50 African countries during the period from 1980 to 2009, and the system generalized method of moment (SYS-GMM) estimators as proposed by Blundell and Bond (1998). When Does Decision Autonomy Increase Expatriate Managers' Adjustment? 13 Enter your email address below and we will send you your username, If the address matches an existing account you will receive an email with instructions to retrieve your username, By continuing to browse this site, you agree to its use of cookies as described in our, I have read and accept the Wiley Online Library Terms and Conditions of Use, https://doi.org/10.1111/j.1467-9701.2006.00758.x. Onyeiwu, S. and H. Shrestha (2004). A Bitter Pill? As tolerance towards corruption tends to vary from country to country, countries are disaggregated into developed economies and developing economies. Lucas, R.E. A Conceptual Examination of Workplace Crimes and Organizational Identification. It finds that FDI inflows had a significant impact on economic growth in the African region during the period of interest. A Non-Proxied Empirical Investigation of Cultures Effect on Corruption. Learn more. The antecedents and effects of national corruption: A meta-analysis. Use the link below to share a full-text version of this article with your friends and colleagues. Technology diffusion, international integration and participation in developing economies - a review of major concepts and findings. A fundamental challenge to the economies of developing countries in East Africa is how to achieve a sustainable increase in output over time. A new area of research has recently emer ged that analyzes the impact of corruption on foreign direct investment (FDI) in developing countries. The Dark Side of Authority: Antecedents, Mechanisms, and Outcomes of Organizational Corruption. The Corruption Perceptions Index (CPI) collated by Transparency International, ranked South Africa 61 out of 168 countries with a score of 44 out of 100 (with 100 being the least corrupt) in 2015, which is down from 45 in 2010, 50 in 2000 and 56 in 1995. Kahsai, and Y.G. and R. Zwinkels (2008). The full text of this article hosted at iucr.org is unavailable due to technical difficulties. (1996). Cross-national Distance and FDI: The Moderating Role of Host Country Local Demand. Please check your email for instructions on resetting your password. Durante el último cuarto de siglo, los flujos de inversión extranjera directa (IED) han crecido exponencialmente en todo el mundo. This study examines the impact of foreign direct investment (FDI) on economic growth and its determinants in East African countries. Short Introduction to the Generalized Method of Moments. Sala, H. and P. Trivin (2014). Effects of FDI Flows on Institutional Development: Does It Matter Where the Investors are from?. Determinants of software piracy under risk aversion: a model with empirical evidence. New Evidence from African Countries. Cultural Practices and Virtual Social Networks Diffusion: An International Analysis Using GLOBE Scores. Handbook of Research on Global Business Opportunities. Effects of culture on firm risk-taking: a cross-country and cross-industry analysis. Investors who seek a fair, competitive business environment will avoid investing in countries where there is a high level of corruption. Results indicate that the more rapid the rate of change in FDI, the higher the level of corruption. We use cookies to help provide and enhance our service and tailor content and ads. The author thanks the Centre for International Business, Education and Research (CIBER) at the University of Kansas for financial support. For the past quarter of a century, foreign direct investment (FDI) flows have grown exponentially across the world. Governance infrastructure and FDI flows in developing countries. Love, Hate, Ambivalence, or Indifference? The Journal of International Scientific Researches. International Journal of Innovation and Economic Development. and C.W.J. We assess the impact of FDI inflows on economic growth in the African region. She is also grateful to Ted Juhl, Donald Lien, Francis Owusu and the participants at the United Nations University/World Institute of Development Economics Research (UNU‐WIDER) conference on Sharing Global Prosperity, 8 September, 2003, Helsinki, for helpful comments. By continuing you agree to the use of cookies. Foreign Direct Investment Inflows to East Africa: Do Institutions Matter? However, the relationship between FDI and these country characteristics has not been studied. International Journal of Emerging Markets. Information and Communication Technologies (ICTs) and Corruption Level: Empirical Evidence from Panel Data Analysis. Balasubramanyam, M.S. International Journal of Managerial Finance. Governance, capital flight and industrialisation in Africa. The full text of this article hosted at iucr.org is unavailable due to technical difficulties. Determinants of Foreign Direct Investment. Why Firms Engage in Corruption: A Top Management Perspective. Foreign Direct Investment and Growth in EP and is Countries. Solow, R.M. Food retail expansion patterns in Sub‐Saharan Africa and the Middle East and North Africa: Institutional and regional perspectives. For the past quarter of a century, foreign direct investment (FDI) flows have grown exponentially across the world. Please check your email for instructions on resetting your password. Hailu (2016). To see the conventions, click here. Multinational Enterprise Management Strategies in Developing Countries. Not affiliated An analysis of the predictors of software piracy within Latin America. Learn about our remote access options. Working off-campus? The Determinants of International Production. Corruption in Asia: Pervasiveness and arbitrariness. İnönü Üniversitesi Sağlık Hizmetleri Meslek Yüksek Okulu Dergisi. High-level politically connected firms, corruption, and analyst forecast accuracy around the world. Please log in. corruption has a negative effect on foreign direct investment.2 The other is the grease camp. This service is more advanced with JavaScript available, Determinants of Economic Growth in Africa Empirical evidence shows that FDI has a positive and significant effect on economic growth in the region. Se demuestra que la estabilidad política, la eficacia del gobierno, una corrupción baja, la libertad de expresión y la rendición de cuentas, y el estado de derecho, no son tan solo factores determinantes de la IED más importantes que el tamaño de los mercados locales, sino que su influencia en la capacidad de los países africanos para atraer IED es también más duradera. The Role of ICT Laws and National Culture in Determining ICT Diffusion and Well-Being: A Cross-Country Examination. Learn about our remote access options, E-mail address: a.rodriguez‐pose@lse.ac.uk, Department of Geography and Environment, London School of Economics, Houghton St, London, WC2A 2AE UK, Trade and Competitiveness Department, World Bank, Washington, USA. WHEN IT RAINS, IT POURS: FOREIGN DIRECT INVESTMENT AND PROVINCIAL CORRUPTION IN VIETNAM. Formal and Informal Corruption Environments and Multinational Enterprise Social Irresponsibility. Corruption perceptions index and economic development of the country. Deviant versus Aspirational Risk Taking: The Effects of Performance Feedback on Bribery Expenditure and R&D Intensity. This paper uses institutional data for 22 countries in order to demonstrate that the quality of governance plays a far from negligible and enduring role in the distribution of FDI in sub‐Saharan Africa. The study uses the dynamic generalized method of moment estimator for data analysis after conducting all the diagnostic tests. Unlimited viewing of the article/chapter PDF and any associated supplements and figures. Corruption in International Business: Does Economic Globalization Help?. Corruption and subsidiary profitability: US MNC subsidiaries in the Asia Pacific region.