Author

  • Ahmad Jafari Samimi

    • Islamic Azad University, Firoozkuh Branch, Firoozkuh, Iran
    • Iran, Islamic Republic of
  • Maryam Monfared

    • Islamic Azad University, Firoozkuh Branch, Firoozkuh, Iran
    • Iran, Islamic Republic of

Abstract

The purpose of the present paper is to investigate the impact of corruption on foreign direct investment revenues in OIC countries. To do so, we have concentrated on a sample of 16 countries for which the necessary data were available for the period 2002-2008. We have used panel regression analysis. Our empirical results support that openness and Gross domestic product (GDP) have positive impact and inflation and corruption have negative impact on FDI in OIC countries.

Keywords

References

  • Abed, G. & Davoodi, H. (2000). Corruption, Structural Reforms and Economic Performance in the Transition Economies. IMF Working Paper (132). International Monetary Fund.
  • Akcay, S. (2001). Is Corruption an Obstacle for Foreign Investors in developing Countries? Cross Country Evidence. Yapi Kredi Economic Review . 12 (2): 27–34.
  • Al-Sadig, A. (2009). The Effects of Corruption on FDI Inflows. Cato Journal . 29(2):267-294
  • Bardhan, P. (1997). Corruption and Development: A Review of Issues. Journal of Economic Literature. 35 (3): 1320-1346.
  • Habib, M. & Zurawicki, L. (2002). Corruption and Foreign Direct Investment. Journal of International Business Studies . 33(2):291–307.
  • Houston, D. (2007). Can Corruption Ever Improve an Economy? Cato Journal , 27(3): 325–342.
  • Kardesler, E. (2009). The Impact of Corruption on FDI: An Application of Efficient Grease Hypothesis to EU Countries. Working Paper (9). Department of Economics, Izmir University of Economics, Izmir, Turkey
  • Kyung, J. H. (2009). Corruption and Foreign Direct Investment. Paper presented at the annual meeting of the International Studies. Available from http://www.allacademic.com/ meta/p100750_index.html.
  • Larrain, B. & Tavares, J. (2004). Does Foreign Direct Investment Decrease Corruption? Cuadernos de Economia , 41: 217-230.
  • Mathur. A. (2007). Foreign Direct Investment, Corruption, and Democracy. Working Paper (135). May 15.
  • Smarzynska, B. & Wei, S. (2002). Corruption and the Composition of Foreign Direct Investment: Firmlevel Evidence. NBER Working Paper No. 7969.
  • Swaleheen, M. & Stansel, D. (2007). Economic Freedom, Corruption, and Economic Growth. Cato Journal , 27(3): 343–58.
  • World Bank Indicators (2009). World Development Indicators 2009. Washington: World Bank.
  • Wei, S-J. (2000). Local Corruption and Global Capital Flows. Brookings Papers on Economic Activity , 2000: 303-354.
  • Zhou, Y. (2007). An empirical study of the relationship between corruption and FDI: with sample selection error correction. University of Birmingham.

Downloads

No downloads have been recorded for this article yet. Figures appear here once readers begin downloading the full text.

How to Cite

Samimi, A. J., & Monfared, M. (2011). Corruption and FDI in OIC Countries. Information Management and Business Review, 2(3), 106-111. https://doi.org/10.22610/imbr.v2i3.888

Share this article

Section

Research Paper

Published

2011-03-15

Submissions

Have research to publish? Information Management and Business Review welcomes submissions.

Make a Submission