Arbeitspapier

Foreign direct investment & corruption in Sub-Saharan Africa: An empirical analysis at the local level

Geocoding firm-level data and matching them to georeferenced household survey data, we are the first to analyze whether the presence of foreign investors is associated with changes in local corruption around foreign-owned production facilities in Sub-Saharan African countries. Applying an estimation strategy that explores the spatial and temporal variation in the data, we find that the presence of foreign firms increases bribery among people living nearby. We show this effect to work through two mechanisms, namely via increased economic activity and partly via norm transmission.

Language
Englisch

Bibliographic citation
Series: Kiel Working Paper ; No. 2118

Classification
Wirtschaft
International Investment; Long-term Capital Movements
Multinational Firms; International Business
Microeconomic Analyses of Economic Development
Subject
FDI
corruption
georeferenced data
Sub-Saharan Africa

Event
Geistige Schöpfung
(who)
Donaubauer, Julian
Kannen, Peter
Steglich, Frauke
Event
Veröffentlichung
(who)
Kiel Institute for the World Economy (IfW)
(where)
Kiel
(when)
2018

Handle
Last update
10.03.2025, 11:45 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Donaubauer, Julian
  • Kannen, Peter
  • Steglich, Frauke
  • Kiel Institute for the World Economy (IfW)

Time of origin

  • 2018

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