The paper presents several key findings. First, Africa's level of government corruption harms bilateral FDI from Europe. Second, the OECD's bilateral foreign aid moderates the negative effects of Africa's host-country corruption on FDI. Third, the level of democracy in the host country also moderates the negative impact of corruption on FDI. Finally, foreign aid strongly moderates the negative effect of corruption on FDI in democratic countries compared to non-democratic host countries.
Corruption, formal institutions, and foreign direct investment: The case of OECD countries in Africa / Bahoo, Salman; Alon, Ilan; Floreani, Josanco; Cucculelli, Marco. - In: THUNDERBIRD INTERNATIONAL BUSINESS REVIEW. - ISSN 1520-6874. - STAMPA. - 65:4(2023), pp. 1-23. [10.1002/tie.22361]
Corruption, formal institutions, and foreign direct investment: The case of OECD countries in Africa
Marco Cucculelli
2023-01-01
Abstract
The paper presents several key findings. First, Africa's level of government corruption harms bilateral FDI from Europe. Second, the OECD's bilateral foreign aid moderates the negative effects of Africa's host-country corruption on FDI. Third, the level of democracy in the host country also moderates the negative impact of corruption on FDI. Finally, foreign aid strongly moderates the negative effect of corruption on FDI in democratic countries compared to non-democratic host countries.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
