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Corruption and Foreign Direct Investment

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  • Mohsin Habib

    (University of Massachusetts)

  • Leon Zurawicki

    (University of Massachusetts)

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

Suggested Citation

  • Mohsin Habib & Leon Zurawicki, 2002. "Corruption and Foreign Direct Investment," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(2), pages 291-307, June.
    • Handle: RePEc:pal:jintbs:v:33:y:2002:i:2:p:291-307
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