Corruption and market attractiveness influences on different types of FDI
Previous studies have proposed that a compensatory model predicts the level of foreign direct investment (FDI) in a country; FDI levels are a result of 'trade-offs' between the positive effect of market attractiveness and the negative influence of corruption. In contrast, we hypothesize an...
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Veröffentlicht in: | Strategic management journal 2008-06, Vol.29 (6), p.673-680 |
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creator | Brouthers, Lance Eliot Gao, Yan McNicol, Jason Patrick |
description | Previous studies have proposed that a compensatory model predicts the level of foreign direct investment (FDI) in a country; FDI levels are a result of 'trade-offs' between the positive effect of market attractiveness and the negative influence of corruption. In contrast, we hypothesize and find that the compensatory relationship only holds for market-seeking investment; for resource-seeking FDI the model appears to be noncompensatory. Greater market attractiveness mitigates the negative impact of corruption on market-seeking investment, but the ability of market attractiveness to mitigate the negative impact of corruption on resource-seeking FDI quickly disappears as corruption levels increase. Implications and future research directions are discussed. |
doi_str_mv | 10.1002/smj.669 |
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source | JSTOR Archive Collection A-Z Listing; Wiley Online Library All Journals |
subjects | Business investment Consumer Price Index Corruption Energy production Financial investments Foreign direct investment Foreign direct investments Foreign investment Gross domestic product Host country Industrial market Investment analysis Investment policy labor-seeking Market analysis market attractiveness Market prices market-seeking Multilevel models Raw material costs Research Notes and Commentaries resource-seeking Studies |
title | Corruption and market attractiveness influences on different types of FDI |
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