The Moderating Effect of Home Country Corruption on the Host Country’s Ability to Attract FDI

Detalhes bibliográficos
Autor(a) principal: Ferreira, Manuel Portugal
Data de Publicação: 2016
Outros Autores: Carreira, Helder Costa, Li, Dan, Serra, Fernando Ribeiro
Tipo de documento: Artigo
Idioma: eng
por
Título da fonte: BBR. Brazilian Business Review (English edition. Online)
Texto Completo: http://www.bbronline.com.br/index.php/bbr/article/view/126
Resumo: Prior research has identified a negative impact of corruption on countries’ ability to attract Foreign Direct Investment (FDI) but has been scant in assessing the investors’ home country effects. We extend prior research by distinguishing the pervasiveness and arbitrariness of host country corruption and their effects on FDI inflows. We also test whether the investors’ home country corruption affects FDI decisions. Results show that host country pervasive corruption negatively drives FDI inflows but not the arbitrariness component. While the investors’ home country corruption negatively impacts the overall FDI outflows, investors from countries with high levels of corruption do not seem to be deterred by a high level of pervasive corruption in the host country. These results suggest that there may exist some form of corruption-dealing capability whereby firms from countries with high corruption are less sensitive to host country corruption and in fact they are able to leverage their capability and invest more in corrupt hosts.
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spelling The Moderating Effect of Home Country Corruption on the Host Country’s Ability to Attract FDIO Efeito Moderador da Corrupção do País de Origem Sobre a Capacidade do País Receptor de Atrair IEDCorruption effectsHome country corruptionCorruption-dealing capabilityForeign direct investmentEfeitos de corrupçãoCorrupção no país de origemCapacidade de lidar com a corrupçãoInvestimento estrangeiro diretoPrior research has identified a negative impact of corruption on countries’ ability to attract Foreign Direct Investment (FDI) but has been scant in assessing the investors’ home country effects. We extend prior research by distinguishing the pervasiveness and arbitrariness of host country corruption and their effects on FDI inflows. We also test whether the investors’ home country corruption affects FDI decisions. Results show that host country pervasive corruption negatively drives FDI inflows but not the arbitrariness component. While the investors’ home country corruption negatively impacts the overall FDI outflows, investors from countries with high levels of corruption do not seem to be deterred by a high level of pervasive corruption in the host country. These results suggest that there may exist some form of corruption-dealing capability whereby firms from countries with high corruption are less sensitive to host country corruption and in fact they are able to leverage their capability and invest more in corrupt hosts.Pesquisa anterior tem identificado um impacto negativo da corrupção sobre a capacidade dos países de atrair Investimento Estrangeiro Direto (IED), todavia tem sido escassa em avaliar os efeitos do país de origem dos investidores. Estendemos a pesquisa prévia distinguindo a corrupção generalizada e arbitrária do país receptor e seus efeitos sobre os influxos de IED. Também testamos se a corrupção no país de origem dos investidores afeta as decisões de IED. Os resultados indicam que a corrupção generalizada do país receptor influencia negativamente os influxos de IED, mas não a componente de arbitrariedade. Enquanto a corrupção no país de origem dos investidores impacta negativamente os fluxos de saída de IED globais, investidores de países com níveis elevados de corrupção não parecem dissuadidos por um alto nível de corrupção generalizada no país receptor. Esses resultados sugerem a possibilidade de haver algum tipo de capacidade de lidar com a corrupção pelo qual as empresas de países com corrupção elevada sejam mais sensíveis à corrupção do país receptor e, de fato, conseguem alavancar sua capacidade e investir mais em países receptores corruptos.FUCAPE Business Shool2016-07-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionPeer-reviewed ArticleArtigo revisado pelos paresapplication/pdfapplication/pdfhttp://www.bbronline.com.br/index.php/bbr/article/view/12610.15728/bbr.2016.13.4.5Brazilian Business Review; Vol. 13 No. 4 (2016): July to August 2016; 94-117Brazilian Business Review; v. 13 n. 4 (2016): Julho a Agosto de 2016; 94-1171808-23861807-734Xreponame:BBR. Brazilian Business Review (English edition. Online)instname:Fucape Business School (FBS)instacron:FBSengporhttp://www.bbronline.com.br/index.php/bbr/article/view/126/189http://www.bbronline.com.br/index.php/bbr/article/view/126/190Ferreira, Manuel PortugalCarreira, Helder CostaLi, DanSerra, Fernando Ribeiroinfo:eu-repo/semantics/openAccess2018-10-31T19:05:21Zoai:ojs.pkp.sfu.ca:article/126Revistahttps://www.bbronline.com.br/index.php/bbr/indexONGhttp://www.bbronline.com.br/index.php/bbr/oai|| bbronline@bbronline.com.br1808-23861808-2386opendoar:2018-10-31T19:05:21BBR. Brazilian Business Review (English edition. Online) - Fucape Business School (FBS)false
dc.title.none.fl_str_mv The Moderating Effect of Home Country Corruption on the Host Country’s Ability to Attract FDI
O Efeito Moderador da Corrupção do País de Origem Sobre a Capacidade do País Receptor de Atrair IED
title The Moderating Effect of Home Country Corruption on the Host Country’s Ability to Attract FDI
spellingShingle The Moderating Effect of Home Country Corruption on the Host Country’s Ability to Attract FDI
Ferreira, Manuel Portugal
Corruption effects
Home country corruption
Corruption-dealing capability
Foreign direct investment
Efeitos de corrupção
Corrupção no país de origem
Capacidade de lidar com a corrupção
Investimento estrangeiro direto
title_short The Moderating Effect of Home Country Corruption on the Host Country’s Ability to Attract FDI
title_full The Moderating Effect of Home Country Corruption on the Host Country’s Ability to Attract FDI
title_fullStr The Moderating Effect of Home Country Corruption on the Host Country’s Ability to Attract FDI
title_full_unstemmed The Moderating Effect of Home Country Corruption on the Host Country’s Ability to Attract FDI
title_sort The Moderating Effect of Home Country Corruption on the Host Country’s Ability to Attract FDI
author Ferreira, Manuel Portugal
author_facet Ferreira, Manuel Portugal
Carreira, Helder Costa
Li, Dan
Serra, Fernando Ribeiro
author_role author
author2 Carreira, Helder Costa
Li, Dan
Serra, Fernando Ribeiro
author2_role author
author
author
dc.contributor.author.fl_str_mv Ferreira, Manuel Portugal
Carreira, Helder Costa
Li, Dan
Serra, Fernando Ribeiro
dc.subject.por.fl_str_mv Corruption effects
Home country corruption
Corruption-dealing capability
Foreign direct investment
Efeitos de corrupção
Corrupção no país de origem
Capacidade de lidar com a corrupção
Investimento estrangeiro direto
topic Corruption effects
Home country corruption
Corruption-dealing capability
Foreign direct investment
Efeitos de corrupção
Corrupção no país de origem
Capacidade de lidar com a corrupção
Investimento estrangeiro direto
description Prior research has identified a negative impact of corruption on countries’ ability to attract Foreign Direct Investment (FDI) but has been scant in assessing the investors’ home country effects. We extend prior research by distinguishing the pervasiveness and arbitrariness of host country corruption and their effects on FDI inflows. We also test whether the investors’ home country corruption affects FDI decisions. Results show that host country pervasive corruption negatively drives FDI inflows but not the arbitrariness component. While the investors’ home country corruption negatively impacts the overall FDI outflows, investors from countries with high levels of corruption do not seem to be deterred by a high level of pervasive corruption in the host country. These results suggest that there may exist some form of corruption-dealing capability whereby firms from countries with high corruption are less sensitive to host country corruption and in fact they are able to leverage their capability and invest more in corrupt hosts.
publishDate 2016
dc.date.none.fl_str_mv 2016-07-01
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
Artigo revisado pelos pares
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://www.bbronline.com.br/index.php/bbr/article/view/126
10.15728/bbr.2016.13.4.5
url http://www.bbronline.com.br/index.php/bbr/article/view/126
identifier_str_mv 10.15728/bbr.2016.13.4.5
dc.language.iso.fl_str_mv eng
por
language eng
por
dc.relation.none.fl_str_mv http://www.bbronline.com.br/index.php/bbr/article/view/126/189
http://www.bbronline.com.br/index.php/bbr/article/view/126/190
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.publisher.none.fl_str_mv FUCAPE Business Shool
publisher.none.fl_str_mv FUCAPE Business Shool
dc.source.none.fl_str_mv Brazilian Business Review; Vol. 13 No. 4 (2016): July to August 2016; 94-117
Brazilian Business Review; v. 13 n. 4 (2016): Julho a Agosto de 2016; 94-117
1808-2386
1807-734X
reponame:BBR. Brazilian Business Review (English edition. Online)
instname:Fucape Business School (FBS)
instacron:FBS
instname_str Fucape Business School (FBS)
instacron_str FBS
institution FBS
reponame_str BBR. Brazilian Business Review (English edition. Online)
collection BBR. Brazilian Business Review (English edition. Online)
repository.name.fl_str_mv BBR. Brazilian Business Review (English edition. Online) - Fucape Business School (FBS)
repository.mail.fl_str_mv || bbronline@bbronline.com.br
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