Corruption and FDI in Brazil: Contesting the “Sand” or “Grease” Hypotheses
Autor(a) principal: | |
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Data de Publicação: | 2022 |
Outros Autores: | , , , , , |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Institucional da UNESP |
Texto Completo: | http://dx.doi.org/10.3390/su14106288 http://hdl.handle.net/11449/241075 |
Resumo: | Foreign Direct Investment (FDI) is seen as a significant driver of economic growth and a potential ally in the struggle against poverty and inequality, making emerging countries focus on attracting this type of investment. Thus, understanding factors that impact the concentration of regional FDI is essential to verifying which characteristics encourage or deter foreign investment. Likewise, the literature has explored institutional factors such as corruption as determining factors for the concentration of FDI. Within this framework, this study aims to empirically examine the sensitivity of multinational enterprises (MNEs) to corruption. Few studies have been carried out on this subject, mainly in Latin American economies. We employ a unique Brazilian municipality-level FDI database to investigate whether corruption hinders (i.e., corruption acting as “sand”) or promotes the concentration of foreign investment (i.e., corruption acting like “grease”). Additionally, we believe that analyzing different economic sectors is essential to deepening the knowledge about the impacts of corruption on FDI. Our results show that corruption acts as “grease” for both overall FDI and at the level of individual sectors. Finally, when taking a non-linear approach, our findings show that corruption acts as grease for FDI only in regions with intermediate (medium–low) levels of corruption. |
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Corruption and FDI in Brazil: Contesting the “Sand” or “Grease” HypothesesBrazilcorruptionForeign Direct Investment (FDI)sand and greaseForeign Direct Investment (FDI) is seen as a significant driver of economic growth and a potential ally in the struggle against poverty and inequality, making emerging countries focus on attracting this type of investment. Thus, understanding factors that impact the concentration of regional FDI is essential to verifying which characteristics encourage or deter foreign investment. Likewise, the literature has explored institutional factors such as corruption as determining factors for the concentration of FDI. Within this framework, this study aims to empirically examine the sensitivity of multinational enterprises (MNEs) to corruption. Few studies have been carried out on this subject, mainly in Latin American economies. We employ a unique Brazilian municipality-level FDI database to investigate whether corruption hinders (i.e., corruption acting as “sand”) or promotes the concentration of foreign investment (i.e., corruption acting like “grease”). Additionally, we believe that analyzing different economic sectors is essential to deepening the knowledge about the impacts of corruption on FDI. Our results show that corruption acts as “grease” for both overall FDI and at the level of individual sectors. Finally, when taking a non-linear approach, our findings show that corruption acts as grease for FDI only in regions with intermediate (medium–low) levels of corruption.Coordenação de Aperfeiçoamento de Pessoal de Nível Superior (CAPES)Fundação de Amparo à Pesquisa do Estado de São Paulo (FAPESP)Department of Production Engineering (DEP) Federal University of São Carlos (UFSCar), SPDepartment of Production Engineering University of São Paulo (USP), SPDepartment of Production Engineering School of Engineering of Bauru São Paulo State University (UNESP), Campus Bauru, SPDepartment of Production Engineering School of Engineering of Bauru São Paulo State University (UNESP), Campus Bauru, SPCAPES: 001FAPESP: 2019/19905-0FAPESP: 2020/06473-1Universidade Federal de São Carlos (UFSCar)Universidade de São Paulo (USP)Universidade Estadual Paulista (UNESP)Onody, Vanessa da Silva MariottoCarvalho, Ana Catarina Gandra dePolloni-Silva, EduardoRoiz, Guilherme AugustoMariano, Enzo Barberio [UNESP]Rebelatto, Daisy Aparecida NascimentoMoralles, Herick Fernando2023-03-01T20:46:00Z2023-03-01T20:46:00Z2022-05-01info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articlehttp://dx.doi.org/10.3390/su14106288Sustainability (Switzerland), v. 14, n. 10, 2022.2071-1050http://hdl.handle.net/11449/24107510.3390/su141062882-s2.0-85131049850Scopusreponame:Repositório Institucional da UNESPinstname:Universidade Estadual Paulista (UNESP)instacron:UNESPengSustainability (Switzerland)info:eu-repo/semantics/openAccess2024-06-28T13:17:53Zoai:repositorio.unesp.br:11449/241075Repositório InstitucionalPUBhttp://repositorio.unesp.br/oai/requestopendoar:29462024-08-05T14:01:19.558895Repositório Institucional da UNESP - Universidade Estadual Paulista (UNESP)false |
dc.title.none.fl_str_mv |
Corruption and FDI in Brazil: Contesting the “Sand” or “Grease” Hypotheses |
title |
Corruption and FDI in Brazil: Contesting the “Sand” or “Grease” Hypotheses |
spellingShingle |
Corruption and FDI in Brazil: Contesting the “Sand” or “Grease” Hypotheses Onody, Vanessa da Silva Mariotto Brazil corruption Foreign Direct Investment (FDI) sand and grease |
title_short |
Corruption and FDI in Brazil: Contesting the “Sand” or “Grease” Hypotheses |
title_full |
Corruption and FDI in Brazil: Contesting the “Sand” or “Grease” Hypotheses |
title_fullStr |
Corruption and FDI in Brazil: Contesting the “Sand” or “Grease” Hypotheses |
title_full_unstemmed |
Corruption and FDI in Brazil: Contesting the “Sand” or “Grease” Hypotheses |
title_sort |
Corruption and FDI in Brazil: Contesting the “Sand” or “Grease” Hypotheses |
author |
Onody, Vanessa da Silva Mariotto |
author_facet |
Onody, Vanessa da Silva Mariotto Carvalho, Ana Catarina Gandra de Polloni-Silva, Eduardo Roiz, Guilherme Augusto Mariano, Enzo Barberio [UNESP] Rebelatto, Daisy Aparecida Nascimento Moralles, Herick Fernando |
author_role |
author |
author2 |
Carvalho, Ana Catarina Gandra de Polloni-Silva, Eduardo Roiz, Guilherme Augusto Mariano, Enzo Barberio [UNESP] Rebelatto, Daisy Aparecida Nascimento Moralles, Herick Fernando |
author2_role |
author author author author author author |
dc.contributor.none.fl_str_mv |
Universidade Federal de São Carlos (UFSCar) Universidade de São Paulo (USP) Universidade Estadual Paulista (UNESP) |
dc.contributor.author.fl_str_mv |
Onody, Vanessa da Silva Mariotto Carvalho, Ana Catarina Gandra de Polloni-Silva, Eduardo Roiz, Guilherme Augusto Mariano, Enzo Barberio [UNESP] Rebelatto, Daisy Aparecida Nascimento Moralles, Herick Fernando |
dc.subject.por.fl_str_mv |
Brazil corruption Foreign Direct Investment (FDI) sand and grease |
topic |
Brazil corruption Foreign Direct Investment (FDI) sand and grease |
description |
Foreign Direct Investment (FDI) is seen as a significant driver of economic growth and a potential ally in the struggle against poverty and inequality, making emerging countries focus on attracting this type of investment. Thus, understanding factors that impact the concentration of regional FDI is essential to verifying which characteristics encourage or deter foreign investment. Likewise, the literature has explored institutional factors such as corruption as determining factors for the concentration of FDI. Within this framework, this study aims to empirically examine the sensitivity of multinational enterprises (MNEs) to corruption. Few studies have been carried out on this subject, mainly in Latin American economies. We employ a unique Brazilian municipality-level FDI database to investigate whether corruption hinders (i.e., corruption acting as “sand”) or promotes the concentration of foreign investment (i.e., corruption acting like “grease”). Additionally, we believe that analyzing different economic sectors is essential to deepening the knowledge about the impacts of corruption on FDI. Our results show that corruption acts as “grease” for both overall FDI and at the level of individual sectors. Finally, when taking a non-linear approach, our findings show that corruption acts as grease for FDI only in regions with intermediate (medium–low) levels of corruption. |
publishDate |
2022 |
dc.date.none.fl_str_mv |
2022-05-01 2023-03-01T20:46:00Z 2023-03-01T20:46:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://dx.doi.org/10.3390/su14106288 Sustainability (Switzerland), v. 14, n. 10, 2022. 2071-1050 http://hdl.handle.net/11449/241075 10.3390/su14106288 2-s2.0-85131049850 |
url |
http://dx.doi.org/10.3390/su14106288 http://hdl.handle.net/11449/241075 |
identifier_str_mv |
Sustainability (Switzerland), v. 14, n. 10, 2022. 2071-1050 10.3390/su14106288 2-s2.0-85131049850 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
Sustainability (Switzerland) |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.source.none.fl_str_mv |
Scopus reponame:Repositório Institucional da UNESP instname:Universidade Estadual Paulista (UNESP) instacron:UNESP |
instname_str |
Universidade Estadual Paulista (UNESP) |
instacron_str |
UNESP |
institution |
UNESP |
reponame_str |
Repositório Institucional da UNESP |
collection |
Repositório Institucional da UNESP |
repository.name.fl_str_mv |
Repositório Institucional da UNESP - Universidade Estadual Paulista (UNESP) |
repository.mail.fl_str_mv |
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1808128304835723264 |