The MNC as an Agent of Change for Host-Country Institutions: FDI and Corruption

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dc.contributor.author Tadesse, Solomon en_US
dc.contributor.author Kwok, Chuck en_US
dc.date.accessioned 2007-10-25T20:20:28Z
dc.date.available 2007-10-25T20:20:28Z
dc.date.issued 2006-09-01 en_US
dc.identifier.other RePEc:wdi:papers:2007-882 en_US
dc.identifier.uri http://hdl.handle.net/2027.42/57262 en_US
dc.description.abstract Most empirical research examines how the institutional environment of corruption shapes the behavior of MNCs. In this study, we would like to highlight the other side of the picture: how the presence of MNC may shape the institutional environment of corruption over time. We propose three avenues through which the MNC may have an impact on its host institutions: the regulatory pressure effect, the demonstration effect, and the professionalization effect. Based on extensive data on FDI and corruption for a large sample of countries over the last 30 years, the empirical results are consistent with our general hypothesis that foreign direct investment generates positive spillover effects on the institutional environment of host countries. Such findings provide a glimmer of hope for the future of the host country where corruption is most prevalent. en_US
dc.format.extent 231720 bytes
dc.format.extent 1802 bytes
dc.format.mimetype application/pdf
dc.format.mimetype text/plain
dc.relation.ispartofseries 882 en_US
dc.subject Foreign Direct Investment, Corruption en_US
dc.subject.other F21, F23, M14, M16, O73 en_US
dc.title The MNC as an Agent of Change for Host-Country Institutions: FDI and Corruption en_US
dc.type Working Paper en_US
dc.subject.hlbsecondlevel Economics en_US
dc.subject.hlbtoplevel Business en_US
dc.contributor.affiliationum William Davidson Institute en_US
dc.description.bitstreamurl http://deepblue.lib.umich.edu/bitstream/2027.42/57262/1/wp882 .pdf en_US
dc.owningcollname William Davidson Institute (WDI) - Working Papers
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