Foreign direct investment, corruption and the OECD Anti-Bribery Convention

Adrian Blundell-Wignall and Caroline Roulet

No 2017/1, OECD Working Papers on International Investment from OECD Publishing

Abstract: This paper estimates a dynamic foreign direct investment (FDI) gravity model to explore the impact of corruption in general and the OECD Anti-Bribery Convention in particular. The evidence from previous studies in both domains is mixed, probably due to econometric inconsistencies and misuse of data. The more robust findings are that corruption has an insignificant or even positive effect on FDI in the general population. However, adherence to the OECD Anti-Bribery Convention has a clear negative impact on FDI—countries that adhere reduce investments in corrupt destinations.

Keywords: corrumption; foreign direct investment; institutions; law (search for similar items in EconPapers)
JEL-codes: F21 F23 (search for similar items in EconPapers)
Date: 2017-01-25
New Economics Papers: this item is included in nep-int and nep-pol
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:oec:dafaaa:2017/1-en

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