Journal of International Business Studies

, Volume 33, Issue 2, pp 291–307

Corruption and Foreign Direct Investment

  • Mohsin Habib
  • Leon Zurawicki
Article

DOI: 10.1057/palgrave.jibs.8491017

Cite this article as:
Habib, M. & Zurawicki, L. J Int Bus Stud (2002) 33: 291. doi:10.1057/palgrave.jibs.8491017

Abstract

This study examines the impact of corruption on foreign direct investment (FDI). First, the level of corruption in the host country is analyzed. Second, the absolute difference in the corruption level between the host and home country is examined. The analysis provides support for the negative impacts of both. The results suggest that foreign investors generally avoid corruption because it is considered wrong and it can create operational inefficiencies.

Copyright information

© Academy of International Business 2002

Authors and Affiliations

  • Mohsin Habib
    • 1
  • Leon Zurawicki
    • 1
  1. 1.University of MassachusettsBoston