Participação: Aurora Teixeira

Artigo publicado no Journal of African Business em coautoria com Luís Guimarães

The relationship between FDI and corruption/institutional quality in host countries has been widely analyzed. However, the use of
distinct samples and indicators for corruption tends to hinder the interpretation and outcomes of econometric assessments. The
aims of this paper are to assess the extent to which the use of distinct proxies for corruption provides diverse evidence regarding
the relationship between corruption and FDI, and to assess whether controlling for other indicators of institutional quality
reinforces the effect of corruption indicators on FDI inflows. In order to accomplish these goals, we estimate a set of multivariate
logistic models using 96 countries over the period 2000 to 2010. The results evidence that using distinct proxies for corruption
variables, as well as controlling for other types of the countries’ institutional quality, generate distinct outcomes. In isolation, a
country’s transparency and its citizens’ corruption perceptions fail to impact on FDI whereas a bribe-free environment is conducive
to FDI inflows. When we control for the human, social and economic development of the countries, the impact of a transparent
and bribe-free context on FDI attraction is enhanced. Overall, it is clear that in order to become a large recipient of FDI a country
has to guarantee a transparent and bribe-free environment, characterized by low income taxes, high literacy rates and generalized
economic freedom (own labor and property control by citizens).

KEYWORDS Foreign direct investment(FDI); corruption;institutional quality; proxies

O artigo completo pode ser obtido via B-on em: