Foreign Direct Investment, Corruption, and Democracy

Author
Aparna Mathur, Kartikeya Singh
Content Type
Working Paper
Institution
American Enterprise Institute for Public Policy Research
Abstract
This paper studies how factors such as corruption perception and the level of democracy influence foreign direct investment to developing economies. Our results suggest that less corrupt countries and less democratic countries receive more foreign direct investment. What could account for this pattern of investment?
Topic
Corruption, Democratization, Foreign Exchange, International Trade and Finance