Corruption as an Entry Incentive and Exit Barrier for Foreign Direct Investment (FDI)

• Autores: Héctor Flórez, Omar Neme Castillo
• Localización: Revista de economía mundial, ISSN 1576-0162, Nº 57, 2021, págs. 45-66
• Idioma: inglés
• DOI: 10.33776/rem.v0i57.4806
• Títulos paralelos:
  • Corrupción como incentivo de entrada y barrera de salida para la Inversión Extranjera Directa (IED)
• Enlaces
  • Texto completo
• Resumen
  • English

    The paper estimates the effect of corruption in the host country on flows of direct foreign investment (FDI), input and output. The objective is to demonstrate if corruption is a vehicle that attracts FDI or, on the contrary, it is a mechanism that inhibits these capitals. A panel methodology System of Generalized Methods of Moments (Sys-GMM) is used for 126 countries classified by the income level for the 1996-2016 period. It is shown that corruption has the effect of attracting inward-FDI and preventing outward-FDI, having a positive effect on net FDI. There is also a significant difference in the sensitivity of FDI to corruption among groups of countries.

  • English

    El documento estima el efecto de la corrupción en el país anfitrión sobre los flujos de inversión extranjera directa (IED), entrada y salida. El objetivo es demostrar si la corrupción es un vehículo que atrae IED o, por el contrario, es un mecanismo que inhibe estos capitales. Se utiliza un sistema de metodología de panel de Método Generalizado de Momentos (Sys-GMM) para 126 países clasificados por nivel de ingresos para el período 1996-2016. Se muestra que la corrupción tiene el efecto de incentivar la entrada y desinhibir la salida de la IED, lo que tiene un efecto positivo en la IED neta. También existe una diferencia significativa en la sensibilidad de la IED a la corrupción entre grupos de países.

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