Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
964278 | Journal of International Money and Finance | 2009 | 20 Pages |
Abstract
This paper studies the joint impact of corruption on the entry mode and volume of inward foreign direct investment (FDI) using a unique firm-level data set. We find that corruption not only reduces inward FDI, but also shifts the ownership structure towards joint ventures. The latter finding supports the view that corruption increases the value of using a local partner to cut through the bureaucratic maze. However, R&D intensive firms are found to favor sole ownership.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Beata S. Javorcik, Shang-Jin Wei,