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Global Economic Integration in Developing Countries: The Role of Corruption and Human Capital Investment

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Abstract

Globalization is multifaceted and involves the interaction among businesses, services, governments, and societies beyond national borders. As a result, the flow of foreign direct investment (FDI), international trade in goods and services, and the economic interdependence of the nations of the world have been increasing. At the same time, much attention has been paid to the effect of corruption prevalent within many cultures and societies, and its impact on the economies, especially developing economies. This paper examines the relationship between human capital investment, the level of national corruption, and the global economic integration (GEI) of a nation in developing countries. Based on the data collected from over 60 countries, and building on the FDI and human capital theories, it was found that human capital investment and corruption are related to GEI. It was also found that the level of corruption moderates the relationship between human capital investment and GEI of developing economies. The findings of the study can help to deepen our understanding of GEI and have practical implications for developing countries in terms developing human capital, which plays a critical role in today’s knowledge-based economy.

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Authors and Affiliations

  1. Monte Ahuja College of Business, Cleveland State University, Cleveland, OH, 44115, USA

    Charles E. Bryant & Rajshekhar G. Javalgi

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  1. Charles E. Bryant
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  2. Rajshekhar G. Javalgi
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Correspondence to Charles E. Bryant.

Appendix: Developing Countries Used in the Study

Appendix: Developing Countries Used in the Study

Algeria

Lithuania

Argentina

Madagascar

Armenia

Malaysia

Barbados

Mauritius

Belize

Mexico

Botswana

Moldova

Brazil

Mongolia

Bulgaria

Morocco

Burkina Faso

Namibia

Cambodia

Paraguay

Cameroon

Peru

Chile

Philippines

Colombia

Poland

Costa Rica

Romania

Dominican Republic

Russian Federation

Egypt, Arab Rep.

Saudi Arabia

El Salvador

Senegal

Ethiopia

Serbia

Georgia

Seychelles

Ghana

St. Lucia

Hungary

Syrian Arab Republic

Indonesia

Tanzania

Jamaica

Thailand

Kuwait

Tunisia

Kyrgyz Republic

Uganda

Lao PDR

Ukraine

Latvia

Uruguay

Lebanon

Vanuatu

Lesotho

Vietnam

Liberia

Yemen, Rep.

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Bryant, C.E., Javalgi, R.G. Global Economic Integration in Developing Countries: The Role of Corruption and Human Capital Investment. J Bus Ethics 136, 437–450 (2016). https://doi.org/10.1007/s10551-014-2490-3

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