Asymmetric Effects of Corruption on FDI: Evidence from Swedish Multinational Firms

Arbeitspapier

We examine the effect of corruption on foreign direct investments. Our model shows that corruption may have different effects on investments aimed at selling to a local market, in comparison to investments aimed at selling from the corrupt market. Using Swedish firm-level data, we find that affiliate local sales decrease with corruption, while affiliate exports increase. Finally, corruption has a negative effect on the probability that a foreign firm will invest in a country. These results are consistent with theory when bribing reduces production costs and local firms have an advantage in bribing vis à vis foreign firms.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IUI Working Paper ; No. 641

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Bureaucracy; Administrative Processes in Public Organizations; Corruption ; International Investment; Long-term Capital Movements ; Multinational Firms; International Business
• Thema: FDI ; Corruption ; Multinational Firm ; Korruption ; Direktinvestition ; Multinationales Unternehmen ; Auslandsmarkt ; Importwirtschaft ; Schweden

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Hakkala, Katariina ; Norbäck, Pehr-Johan ; Svaleryd, Helena
• Ereignis: Veröffentlichung
• (wer): The Research Institute of Industrial Economics (IUI)
• (wo): Stockholm
• (wann): 2005

Weitere Informationen

• Handle: http://hdl.handle.net/10419/81195
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ