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THE EFFECT OF CORRUPTION AND COUNTRY RISK ON FDI INFLOWS: EMPIRICAL EVIDENCE FROM DEVELOPING COUNTRIES

Sayı: 21 4 Nisan 2018
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THE EFFECT OF CORRUPTION AND COUNTRY RISK ON FDI INFLOWS: EMPIRICAL EVIDENCE FROM DEVELOPING COUNTRIES

Öz

The aim of this study is to empirically analyze the effect of corruption and country risk on foreign direct investment (FDI) inflows. The study was carried out using the data of 49 developing countries for the 2002–2015 period. Relationships between the variables were investigated by static and dynamic panel data methods. This empirical analysis revealed the following general findings: i) a decline in corruption and country risk positively affects FDI inflows; ii) financial risk, which is a component of country risk, has no significant effect on FDI inflows, whereas a fall in the level of economic and political risk accelerates FDI inflows; iii) FDI inflows are most sensitive to economic risk. Based on these results, it can be said that developing countries can attract more FDI by creating a quality institutional structure, effectively fighting corruption, and creating sound macroeconomic policies that improve the investment climate and reduce cost, uncertainty, and risk perception.

Anahtar Kelimeler

Corruption,Country risk,FDI,Panel data,Developing countries

Kaynakça

  1. Abed, T. G. and Davoodi, H. R. (2000). Corruption, Structural Reforms, and Economic Performance in the Transition Economies. IMF Working Paper (00/132).
  2. Akay, Ç. E. (2015). Dinamik Panel Veri Modelleri, Selahattin Güriş (Ed.). In Stata ile Panel Veri Modelleri (1 Baskı), İstanbul: DER Yayınları.
  3. Akbar, A., Imdadullah, M., Ullah, A. M. and Aslam, M. (2011). Determinants of Economic Growth in Asian Countries: A Panel Data Perspective. Pakistan Journal of Social Sciences, 31(1), 145-157.
  4. Akçay S. (2001). Is Corruption an obstacle for foreign investors in developing countries?: a cross-country evidence. Yapı kredi Economic Review, 12, 27-34.
  5. Alemu, M. A. (2012). Effects of Corruption on FDI Inflow in Asian Economies. Seoul Journal of Economics, 25(4), 387-412.
  6. Ali, M.A., Asfand, A.Y.K., Bakhtiyar, B.K., and Hammad, R.H.A. (2014). Financial Risk and Foreign Direct Investment: Evidence from Pakistan Economy. International Journal of Business Management and Economic Studies, 1(1), 52-68.
  7. Alimi, R. S. (2015). Financial deepening and economic growth: A System GMM Panel Analysis with application to 7 SSA countries. Munich Personal RePEc Archive, 1-12.
  8. Al-Jaifi, A., Abdullah, H. A. N. and Regupathi, A. Risks and Foreign Direct Investment Inflows: Evidence from Yemen. Jurnal Pengurusan, 46, 89 – 97.
  9. Al-Sadiq, A. (2009). The Effects of Corruption on FDI Inflows. Cato Journal, 29(2), 267-294.
  10. Amundsen, I. (1999). “Political Corruption: An Introduction to the Issues”, Chr. Michelsen Institute Development Studies and Human Rights, Working Paper Series, No. 7, s. 1-33.

Kaynak Göster

APA
Türedi, S. (2018). THE EFFECT OF CORRUPTION AND COUNTRY RISK ON FDI INFLOWS: EMPIRICAL EVIDENCE FROM DEVELOPING COUNTRIES. Uluslararası İktisadi ve İdari İncelemeler Dergisi, 21, 151-172. https://doi.org/10.18092/ulikidince.370653
AMA
1.Türedi S. THE EFFECT OF CORRUPTION AND COUNTRY RISK ON FDI INFLOWS: EMPIRICAL EVIDENCE FROM DEVELOPING COUNTRIES. UİİİD. 2018;(21):151-172. doi:10.18092/ulikidince.370653
Chicago
Türedi, Salih. 2018. “THE EFFECT OF CORRUPTION AND COUNTRY RISK ON FDI INFLOWS: EMPIRICAL EVIDENCE FROM DEVELOPING COUNTRIES”. Uluslararası İktisadi ve İdari İncelemeler Dergisi, sy 21: 151-72. https://doi.org/10.18092/ulikidince.370653.
EndNote
Türedi S (01 Temmuz 2018) THE EFFECT OF CORRUPTION AND COUNTRY RISK ON FDI INFLOWS: EMPIRICAL EVIDENCE FROM DEVELOPING COUNTRIES. Uluslararası İktisadi ve İdari İncelemeler Dergisi 21 151–172.
IEEE
[1]S. Türedi, “THE EFFECT OF CORRUPTION AND COUNTRY RISK ON FDI INFLOWS: EMPIRICAL EVIDENCE FROM DEVELOPING COUNTRIES”, UİİİD, sy 21, ss. 151–172, Tem. 2018, doi: 10.18092/ulikidince.370653.
ISNAD
Türedi, Salih. “THE EFFECT OF CORRUPTION AND COUNTRY RISK ON FDI INFLOWS: EMPIRICAL EVIDENCE FROM DEVELOPING COUNTRIES”. Uluslararası İktisadi ve İdari İncelemeler Dergisi. 21 (01 Temmuz 2018): 151-172. https://doi.org/10.18092/ulikidince.370653.
JAMA
1.Türedi S. THE EFFECT OF CORRUPTION AND COUNTRY RISK ON FDI INFLOWS: EMPIRICAL EVIDENCE FROM DEVELOPING COUNTRIES. UİİİD. 2018;:151–172.
MLA
Türedi, Salih. “THE EFFECT OF CORRUPTION AND COUNTRY RISK ON FDI INFLOWS: EMPIRICAL EVIDENCE FROM DEVELOPING COUNTRIES”. Uluslararası İktisadi ve İdari İncelemeler Dergisi, sy 21, Temmuz 2018, ss. 151-72, doi:10.18092/ulikidince.370653.
Vancouver
1.Salih Türedi. THE EFFECT OF CORRUPTION AND COUNTRY RISK ON FDI INFLOWS: EMPIRICAL EVIDENCE FROM DEVELOPING COUNTRIES. UİİİD. 01 Temmuz 2018;(21):151-72. doi:10.18092/ulikidince.370653