How Taxing is Corruption on International Investors
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In this paper, the effect of corruption on foreign direct investment (FDI) has been studied in twelve source countries to 45 host countries, and two central findings were found: 1) a rise in either the tax rate on multinational firms or the corruption level in a host country reduces inward FDI; and 2) American investors are averse to corruption in host countries but not necessarily more so than average OECD investors, in spite of the U.S. Foreign Corrupt Practices Act of 1977.Abstract:
This paper studies the effect of corruption on foreign direct investment. The sample covers bilateral investment from twelve source countries to 45 host countries. There are two central findings. First, a rise in either the tax rate on multinational firms or the corruption level in a host country reduces inward foreign direct investment (FDI). In a benchmark estimation, an increase in the corruption level from that of Singapore to that of Mexico would have the same negative effect on inward FDI as raising the tax rate by fifty percentage points. Second, American investors are averse to corruption in host countries, but not necessarily more so than average OECD investors, in spite of the U.S. Foreign Corrupt Practices Act of 1977.read more
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Corruption and Growth
TL;DR: In this paper, a newly assembled data set consisting of subjective indices of corruption, the amount of red tape, the efficiency of the judicial system, and various categories of political stability for a cross section of countries is analyzed.
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Analysis of Panel Data
TL;DR: In this paper, the authors propose a homogeneity test for linear regression models (analysis of covariance) and show that linear regression with variable intercepts is more consistent than simple regression with simple intercepts.
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Institutions and economic performance: cross‐country tests using alternative institutional measures
Stephen Knack,Philip Keefer +1 more
TL;DR: The authors compared more direct measures of the institutional environment with both the instability proxies used by Barro (1991) and the Gastil indices, by comparing their effects both on growth and private investment.
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Networks versus Markets in International Trade
TL;DR: In this article, the authors propose a network/search view of international trade in differentiated products and present evidence that supports the view that proximity and common language/colonial ties are more important for differentiated products than for products traded on organized exchanges in matching international buyers and sellers.
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Networks versus markets in international trade
TL;DR: In this paper, the authors propose a network/search view of international trade in differentiated products and present evidence that supports the view that proximity and common language/colonial ties are more important for differentiated products than for products traded on organized exchanges in matching international buyers and sellers.