HOW CORRUPTION AFFECT FOREIGN DIRECT INVESTMENT
Author
Yuan, Jing
Term
4. Term
Publication year
2016
Submitted on
2016-02-04
Pages
67
Abstract
Dette speciale undersøger sammenhængen mellem korruption og udenlandske direkte investeringer (FDI) ved hjælp af en gravity model—en økonomisk model inspireret af tyngdeloven, der bruges til at analysere strømme mellem lande. Analysen omfatter fire udviklede europæiske lande og tolv nye EU-medlemsstater i perioden 2007–2012. FDI-beholdning forstås som den samlede værdi af udenlandske investeringer i et land. Resultaterne peger på, at højere niveauer af korruption er forbundet med lavere FDI-beholdninger, hvilket tyder på, at korruption afskrækker udenlandske investorer.
This thesis examines how corruption relates to foreign direct investment (FDI) using a gravity model—an economic framework inspired by the physics of gravity to study flows between countries. The analysis covers four developed European countries and twelve new EU member states from 2007 to 2012. FDI stock is understood as the total value of foreign investments held in a country. The results indicate that higher levels of corruption are associated with lower FDI stocks, suggesting that corruption discourages foreign investors.
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