Economics at your fingertips  

The MNC as an agent of change for host-country institutions: FDI and corruption

Chuck C Y Kwok and Solomon Tadesse
Additional contact information
Chuck C Y Kwok: Moore School of Business, University of South Carolina, Columbia, SC, USA

Journal of International Business Studies, 2006, vol. 37, issue 6, 767-785

Abstract: Most empirical research examines how the institutional environment of corruption shapes the behavior of multinational corporations (MNCs). In this study, we would like to highlight the other side of the picture: how the presence of MNCs may shape the institutional environment of corruption over time. We propose three avenues through which the MNCs may have an impact on its host institutions: regulatory pressure effect, demonstration effect, and professionalization effect. Based on extensive data on foreign direct investment and corruption for a large sample of countries over the last 30 years, the empirical results are generally consistent with our hypothesis. Such findings provide a glimmer of hope for the future of the host country where corruption is prevalent. Journal of International Business Studies (2006) 37, 767–785. doi:10.1057/palgrave.jibs.8400228

Date: 2006
References: Add references at CitEc
Citations: View citations in EconPapers (68) Track citations by RSS feed

Downloads: (external link) Link to full text PDF (application/pdf) Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/41267/PS2

Access Statistics for this article

Journal of International Business Studies is currently edited by John Cantwell

More articles in Journal of International Business Studies from Palgrave Macmillan, Academy of International Business
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

Page updated 2020-12-04
Handle: RePEc:pal:jintbs:v:37:y:2006:i:6:p:767-785