Asymmetric Effects of Corruption on FDI: Evidence from Swedish Multinational Firms
We examine the effect of corruption on foreign direct investment (FDI). Starting out from the theory of FDI, we show that corruption can have different effects on horizontal investments, which are primarily aimed at sales to the local market, compared with vertical investments, which are made to acc...
Gespeichert in:
| Veröffentlicht in: | The review of economics and statistics 2008-11, Vol.90 (4), p.627-642 |
|---|---|
| Hauptverfasser: | , , |
| Format: | Artikel |
| Sprache: | eng |
| Schlagworte: | |
| Online-Zugang: | Volltext |
| Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
| container_end_page | 642 |
|---|---|
| container_issue | 4 |
| container_start_page | 627 |
| container_title | The review of economics and statistics |
| container_volume | 90 |
| creator | Hakkala, Katariina Nilsson Norbäck, Pehr-Johan Svaleryd, Helena |
| description | We examine the effect of corruption on foreign direct investment (FDI). Starting out from the theory of FDI, we show that corruption can have different effects on horizontal investments, which are primarily aimed at sales to the local market, compared with vertical investments, which are made to access lower factor costs for export sales. Using Swedish firm-level data, we find that corruption reduces the probability that a firm will invest in a country. Moreover, when studying the different types of investments, we find that horizontal investments, measured by affiliate local sales, are deterred by corruption to a larger extent than are vertical investments. We are also able to establish a causal effect of corruption on FDI. |
| doi_str_mv | 10.1162/rest.90.4.627 |
| format | Article |
| fullrecord | <record><control><sourceid>jstor_proqu</sourceid><recordid>TN_cdi_proquest_miscellaneous_20697526</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><jstor_id>40043105</jstor_id><sourcerecordid>40043105</sourcerecordid><originalsourceid>FETCH-LOGICAL-c547t-527603a9ab25b1b91b1ce9accbbd83a8e4a97972e3d096e42f555a03cfe90723</originalsourceid><addsrcrecordid>eNp10c9rFDEUB_AgFlxrjx6F4EEoOOvL7423ZburhYpgi9eQyWY0y8xmTGZa6l9vhpEiWiGQyyff914eQi8JLAmR9F3yeVhqWPKlpOoJWhDBoNKE06doAcB4JQUTz9DznA8AQBRhC_Rlne-7zg8pOLxtGu-GjGODNzGlsR9CPOJydheX7_H2Nuz90XncpNjh6zu_D_k7_jS2QzjaSdoW70Lq8gt00tg2-7Pf9ym62W1vNh-rq88fLjfrq8oJroZKUCWBWW1rKmpSa1IT57V1rq73K2ZXnluttKKe7UFLz2kjhLDAXOM1KMpO0ds5Nt_5fqxNn0Jn072JNpiL8HVtYvpmxtFQkLAShb-ZeZ_ij7H8lOlCdr5t7dHHMU9MK0Flga__goc4pjJdNkRzuSIKJlTNyKWYc_LNQ3kCZlqGmZZhNBhuyjKKX8--C3_kTeZWQ-CGASdSlCYoKc8NaPMz9P9knD-S8b96r2Z7yENMD81xAM4ICPYLDrGpfQ</addsrcrecordid><sourcetype>Open Access Repository</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>194681706</pqid></control><display><type>article</type><title>Asymmetric Effects of Corruption on FDI: Evidence from Swedish Multinational Firms</title><source>JSTOR Mathematics & Statistics Collection</source><source>EBSCOhost Business Source Complete</source><source>MIT Press Journals</source><source>JSTOR</source><creator>Hakkala, Katariina Nilsson ; Norbäck, Pehr-Johan ; Svaleryd, Helena</creator><creatorcontrib>Hakkala, Katariina Nilsson ; Norbäck, Pehr-Johan ; Svaleryd, Helena</creatorcontrib><description>We examine the effect of corruption on foreign direct investment (FDI). Starting out from the theory of FDI, we show that corruption can have different effects on horizontal investments, which are primarily aimed at sales to the local market, compared with vertical investments, which are made to access lower factor costs for export sales. Using Swedish firm-level data, we find that corruption reduces the probability that a firm will invest in a country. Moreover, when studying the different types of investments, we find that horizontal investments, measured by affiliate local sales, are deterred by corruption to a larger extent than are vertical investments. We are also able to establish a causal effect of corruption on FDI.</description><identifier>ISSN: 0034-6535</identifier><identifier>ISSN: 1530-9142</identifier><identifier>EISSN: 1530-9142</identifier><identifier>DOI: 10.1162/rest.90.4.627</identifier><identifier>CODEN: RECSA9</identifier><language>eng</language><publisher>Cambridge: MIT Press</publisher><subject>Corruption ; Cost of sales ; Data corruption ; Economic theory ; Effects ; Financial investments ; Foreign direct investments ; Foreign investment ; Host country ; Multinational corporations ; Probability ; Production costs ; Protestantism ; Sales taxes ; Securities sales ; Studies ; Tariffs</subject><ispartof>The review of economics and statistics, 2008-11, Vol.90 (4), p.627-642</ispartof><rights>Copyright 2008 the President and Fellows of Harvard College and the Massachusetts Institute of Technology</rights><rights>Copyright MIT Press Journals Nov 2008</rights><lds50>peer_reviewed</lds50><oa>free_for_read</oa><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c547t-527603a9ab25b1b91b1ce9accbbd83a8e4a97972e3d096e42f555a03cfe90723</citedby><cites>FETCH-LOGICAL-c547t-527603a9ab25b1b91b1ce9accbbd83a8e4a97972e3d096e42f555a03cfe90723</cites></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktopdf>$$Uhttps://www.jstor.org/stable/pdf/40043105$$EPDF$$P50$$Gjstor$$H</linktopdf><linktohtml>$$Uhttps://www.jstor.org/stable/40043105$$EHTML$$P50$$Gjstor$$H</linktohtml><link.rule.ids>230,314,776,780,799,828,881,27903,27904,53987,53988,57995,57999,58228,58232</link.rule.ids><backlink>$$Uhttps://urn.kb.se/resolve?urn=urn:nbn:se:uu:diva-206085$$DView record from Swedish Publication Index$$Hfree_for_read</backlink></links><search><creatorcontrib>Hakkala, Katariina Nilsson</creatorcontrib><creatorcontrib>Norbäck, Pehr-Johan</creatorcontrib><creatorcontrib>Svaleryd, Helena</creatorcontrib><title>Asymmetric Effects of Corruption on FDI: Evidence from Swedish Multinational Firms</title><title>The review of economics and statistics</title><description>We examine the effect of corruption on foreign direct investment (FDI). Starting out from the theory of FDI, we show that corruption can have different effects on horizontal investments, which are primarily aimed at sales to the local market, compared with vertical investments, which are made to access lower factor costs for export sales. Using Swedish firm-level data, we find that corruption reduces the probability that a firm will invest in a country. Moreover, when studying the different types of investments, we find that horizontal investments, measured by affiliate local sales, are deterred by corruption to a larger extent than are vertical investments. We are also able to establish a causal effect of corruption on FDI.</description><subject>Corruption</subject><subject>Cost of sales</subject><subject>Data corruption</subject><subject>Economic theory</subject><subject>Effects</subject><subject>Financial investments</subject><subject>Foreign direct investments</subject><subject>Foreign investment</subject><subject>Host country</subject><subject>Multinational corporations</subject><subject>Probability</subject><subject>Production costs</subject><subject>Protestantism</subject><subject>Sales taxes</subject><subject>Securities sales</subject><subject>Studies</subject><subject>Tariffs</subject><issn>0034-6535</issn><issn>1530-9142</issn><issn>1530-9142</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2008</creationdate><recordtype>article</recordtype><recordid>eNp10c9rFDEUB_AgFlxrjx6F4EEoOOvL7423ZburhYpgi9eQyWY0y8xmTGZa6l9vhpEiWiGQyyff914eQi8JLAmR9F3yeVhqWPKlpOoJWhDBoNKE06doAcB4JQUTz9DznA8AQBRhC_Rlne-7zg8pOLxtGu-GjGODNzGlsR9CPOJydheX7_H2Nuz90XncpNjh6zu_D_k7_jS2QzjaSdoW70Lq8gt00tg2-7Pf9ym62W1vNh-rq88fLjfrq8oJroZKUCWBWW1rKmpSa1IT57V1rq73K2ZXnluttKKe7UFLz2kjhLDAXOM1KMpO0ds5Nt_5fqxNn0Jn072JNpiL8HVtYvpmxtFQkLAShb-ZeZ_ij7H8lOlCdr5t7dHHMU9MK0Flga__goc4pjJdNkRzuSIKJlTNyKWYc_LNQ3kCZlqGmZZhNBhuyjKKX8--C3_kTeZWQ-CGASdSlCYoKc8NaPMz9P9knD-S8b96r2Z7yENMD81xAM4ICPYLDrGpfQ</recordid><startdate>20081101</startdate><enddate>20081101</enddate><creator>Hakkala, Katariina Nilsson</creator><creator>Norbäck, Pehr-Johan</creator><creator>Svaleryd, Helena</creator><general>MIT Press</general><general>The MIT Press</general><general>MIT Press Journals, The</general><scope>AAYXX</scope><scope>CITATION</scope><scope>8BJ</scope><scope>FQK</scope><scope>JBE</scope><scope>7U1</scope><scope>7U2</scope><scope>C1K</scope><scope>ADTPV</scope><scope>AOWAS</scope><scope>DF2</scope></search><sort><creationdate>20081101</creationdate><title>Asymmetric Effects of Corruption on FDI: Evidence from Swedish Multinational Firms</title><author>Hakkala, Katariina Nilsson ; Norbäck, Pehr-Johan ; Svaleryd, Helena</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c547t-527603a9ab25b1b91b1ce9accbbd83a8e4a97972e3d096e42f555a03cfe90723</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2008</creationdate><topic>Corruption</topic><topic>Cost of sales</topic><topic>Data corruption</topic><topic>Economic theory</topic><topic>Effects</topic><topic>Financial investments</topic><topic>Foreign direct investments</topic><topic>Foreign investment</topic><topic>Host country</topic><topic>Multinational corporations</topic><topic>Probability</topic><topic>Production costs</topic><topic>Protestantism</topic><topic>Sales taxes</topic><topic>Securities sales</topic><topic>Studies</topic><topic>Tariffs</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Hakkala, Katariina Nilsson</creatorcontrib><creatorcontrib>Norbäck, Pehr-Johan</creatorcontrib><creatorcontrib>Svaleryd, Helena</creatorcontrib><collection>CrossRef</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>International Bibliography of the Social Sciences</collection><collection>International Bibliography of the Social Sciences</collection><collection>Risk Abstracts</collection><collection>Safety Science and Risk</collection><collection>Environmental Sciences and Pollution Management</collection><collection>SwePub</collection><collection>SwePub Articles</collection><collection>SWEPUB Uppsala universitet</collection><jtitle>The review of economics and statistics</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Hakkala, Katariina Nilsson</au><au>Norbäck, Pehr-Johan</au><au>Svaleryd, Helena</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Asymmetric Effects of Corruption on FDI: Evidence from Swedish Multinational Firms</atitle><jtitle>The review of economics and statistics</jtitle><date>2008-11-01</date><risdate>2008</risdate><volume>90</volume><issue>4</issue><spage>627</spage><epage>642</epage><pages>627-642</pages><issn>0034-6535</issn><issn>1530-9142</issn><eissn>1530-9142</eissn><coden>RECSA9</coden><abstract>We examine the effect of corruption on foreign direct investment (FDI). Starting out from the theory of FDI, we show that corruption can have different effects on horizontal investments, which are primarily aimed at sales to the local market, compared with vertical investments, which are made to access lower factor costs for export sales. Using Swedish firm-level data, we find that corruption reduces the probability that a firm will invest in a country. Moreover, when studying the different types of investments, we find that horizontal investments, measured by affiliate local sales, are deterred by corruption to a larger extent than are vertical investments. We are also able to establish a causal effect of corruption on FDI.</abstract><cop>Cambridge</cop><pub>MIT Press</pub><doi>10.1162/rest.90.4.627</doi><tpages>16</tpages><oa>free_for_read</oa></addata></record> |
| fulltext | fulltext |
| identifier | ISSN: 0034-6535 |
| ispartof | The review of economics and statistics, 2008-11, Vol.90 (4), p.627-642 |
| issn | 0034-6535 1530-9142 1530-9142 |
| language | eng |
| recordid | cdi_proquest_miscellaneous_20697526 |
| source | JSTOR Mathematics & Statistics Collection; EBSCOhost Business Source Complete; MIT Press Journals; JSTOR |
| subjects | Corruption Cost of sales Data corruption Economic theory Effects Financial investments Foreign direct investments Foreign investment Host country Multinational corporations Probability Production costs Protestantism Sales taxes Securities sales Studies Tariffs |
| title | Asymmetric Effects of Corruption on FDI: Evidence from Swedish Multinational Firms |
| url | https://sfx.bib-bvb.de/sfx_tum?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2025-01-24T20%3A25%3A54IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-jstor_proqu&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=Asymmetric%20Effects%20of%20Corruption%20on%20FDI:%20Evidence%20from%20Swedish%20Multinational%20Firms&rft.jtitle=The%20review%20of%20economics%20and%20statistics&rft.au=Hakkala,%20Katariina%20Nilsson&rft.date=2008-11-01&rft.volume=90&rft.issue=4&rft.spage=627&rft.epage=642&rft.pages=627-642&rft.issn=0034-6535&rft.eissn=1530-9142&rft.coden=RECSA9&rft_id=info:doi/10.1162/rest.90.4.627&rft_dat=%3Cjstor_proqu%3E40043105%3C/jstor_proqu%3E%3Curl%3E%3C/url%3E&disable_directlink=true&sfx.directlink=off&sfx.report_link=0&rft_id=info:oai/&rft_pqid=194681706&rft_id=info:pmid/&rft_jstor_id=40043105&rfr_iscdi=true |