Corruption and Foreign Direct Investment

Mohsin Habib and Leon Zurawicki
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Mohsin Habib: University of Massachusetts
Leon Zurawicki: University of Massachusetts

Journal of International Business Studies, 2002, vol. 33, issue 2, 307 pages

Abstract: This study examines the impact of corruption on foreign direct investment (FDI). First, the level of corruption in the host country is analyzed. Second, the absolute difference in the corruption level between the host and home country is examined. The analysis provides support for the negative impacts of both. The results suggest that foreign investors generally avoid corruption because it is considered wrong and it can create operational inefficiencies.© 2002 JIBS. Journal of International Business Studies (2002) 33, 291–307

Date: 2002
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