Abstract
Studies of corruption and its relationship with foreign direct investment (FDI) have yielded mixed results. Some have found that corruption deters FDI but others have found the opposite. This study applies Spatial Regression in combination with dynamic panel data to investigate how different corruption perceptions index (CPI) impact upon one of the fundamental decisions made by foreign investors, the choice of FDI location within the selected host country. For a sample of Asean countries and the time period 2005–2015, we find a clear positive relationship between CPI and FDI.
Keywords
- FDI
- Corruption
- Spatial regression
- Asean
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Ngoc, B.H., Hai, D.B., Chinh, T.H. (2018). Assessment of the Should be Effects of Corruption Perception Index on Foreign Direct Investment in ASEAN Countries by Spatial Regression Method. In: Anh, L., Dong, L., Kreinovich, V., Thach, N. (eds) Econometrics for Financial Applications. ECONVN 2018. Studies in Computational Intelligence, vol 760. Springer, Cham. https://doi.org/10.1007/978-3-319-73150-6_33
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DOI: https://doi.org/10.1007/978-3-319-73150-6_33
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