This research studies the effect of corruption on Foreign Direct Investment (FDI) in
various industries. We use industry level data of US Investments abroad in 60 host
countries from 1990 to 2002. We explore the questions of whether corruption is an
impediment to FDI and if so, how does this effect translate to different industrial
sectors. The main element of interest is to see whether the impact of corruption is
uniform across all industries or whether corruption affects various sectors differently
depending on the nature of the sector. We conduct our study using a panel data
model and find that the industry response to corruption is actually dissimilar across
our given set of industries, based on the nature of the industry. Furthermore, we
divide our dataset into sub samples of Less Developed Countries (LDC) and
Developed Countries (DC) using GDP per capita as our basis for the distinction. We
find corruption to attract FDI in our group of DC. In the case of LDC, we find the
impact of corruption on FDI to vary from industry to industry. / Graduation date: 2006
| Identifer | oai:union.ndltd.org:ORGSU/oai:ir.library.oregonstate.edu:1957/28670 |
| Date | 04 January 2006 |
| Creators | Umar, Ayesha |
| Contributors | Tekin-Koru, Ayca |
| Source Sets | Oregon State University |
| Language | en_US |
| Detected Language | English |
| Type | Thesis/Dissertation |
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