The Moderating Effect of Home Country Corruption on the Host Country’s Ability to Attract FDI

Prior research has identified a negative impact of corruption on countries’ ability to attract Foreign Direct Investment (FDI) but has been scant in assessing the investors’ home country effects. We extend prior research by distinguishing the pervasiveness and arbitrariness of host country corruptio...

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Autores principales:	Manuel Portugal Ferreira, Helder Costa Carreira, Dan Li, Fernando Ribeiro Serra
Formato:	article
Lenguaje:	EN PT
Publicado:	FUCAPE Business School 2016
Materias:	corruption effects home country corruption corruption dealing capability Business HF5001-6182
Acceso en línea:	https://doaj.org/article/eee6e0718d1f432c880e661ab92b4020
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spelling	oai:doaj.org-article:eee6e0718d1f432c880e661ab92b40202021-11-11T15:48:06ZThe Moderating Effect of Home Country Corruption on the Host Country’s Ability to Attract FDI1807-734Xhttps://doaj.org/article/eee6e0718d1f432c880e661ab92b40202016-01-01T00:00:00Zhttp://www.redalyc.org/articulo.oa?id=123046404005https://doaj.org/toc/1807-734XPrior research has identified a negative impact of corruption on countries’ ability to attract Foreign Direct Investment (FDI) but has been scant in assessing the investors’ home country effects. We extend prior research by distinguishing the pervasiveness and arbitrariness of host country corruption and their effects on FDI inflows. We also test whether the investors’ home country corruption affects FDI decisions. Results show that host country pervasive corruption negatively drives FDI inflows but not the arbitrariness component. While the investors’ home country corruption negatively impacts the overall FDI outflows, investors from countries with high levels of corruption do not seem to be deterred by a high level of pervasive corruption in the host country. These results suggest that there may exist some form of corruption-dealing capability whereby firms from countries with high corruption are less sensitive to host country corruption and in fact they are able to leverage their capability and invest more in corrupt hosts.Manuel Portugal FerreiraHelder Costa CarreiraDan LiFernando Ribeiro SerraFUCAPE Business Schoolarticlecorruption effectshome country corruptioncorruptiondealing capabilityBusinessHF5001-6182ENPTBBR: Brazilian Business Review, Vol 13, Iss 4, Pp 94-117 (2016)
institution	DOAJ
collection	DOAJ
language	EN PT
topic	corruption effects home country corruption corruption dealing capability Business HF5001-6182
spellingShingle	corruption effects home country corruption corruption dealing capability Business HF5001-6182 Manuel Portugal Ferreira Helder Costa Carreira Dan Li Fernando Ribeiro Serra The Moderating Effect of Home Country Corruption on the Host Country’s Ability to Attract FDI
description	Prior research has identified a negative impact of corruption on countries’ ability to attract Foreign Direct Investment (FDI) but has been scant in assessing the investors’ home country effects. We extend prior research by distinguishing the pervasiveness and arbitrariness of host country corruption and their effects on FDI inflows. We also test whether the investors’ home country corruption affects FDI decisions. Results show that host country pervasive corruption negatively drives FDI inflows but not the arbitrariness component. While the investors’ home country corruption negatively impacts the overall FDI outflows, investors from countries with high levels of corruption do not seem to be deterred by a high level of pervasive corruption in the host country. These results suggest that there may exist some form of corruption-dealing capability whereby firms from countries with high corruption are less sensitive to host country corruption and in fact they are able to leverage their capability and invest more in corrupt hosts.
format	article
author	Manuel Portugal Ferreira Helder Costa Carreira Dan Li Fernando Ribeiro Serra
author_facet	Manuel Portugal Ferreira Helder Costa Carreira Dan Li Fernando Ribeiro Serra
author_sort	Manuel Portugal Ferreira
title	The Moderating Effect of Home Country Corruption on the Host Country’s Ability to Attract FDI
title_short	The Moderating Effect of Home Country Corruption on the Host Country’s Ability to Attract FDI
title_full	The Moderating Effect of Home Country Corruption on the Host Country’s Ability to Attract FDI
title_fullStr	The Moderating Effect of Home Country Corruption on the Host Country’s Ability to Attract FDI
title_full_unstemmed	The Moderating Effect of Home Country Corruption on the Host Country’s Ability to Attract FDI
title_sort	moderating effect of home country corruption on the host country’s ability to attract fdi
publisher	FUCAPE Business School
publishDate	2016
url	https://doaj.org/article/eee6e0718d1f432c880e661ab92b4020
work_keys_str_mv	AT manuelportugalferreira themoderatingeffectofhomecountrycorruptiononthehostcountrysabilitytoattractfdi AT heldercostacarreira themoderatingeffectofhomecountrycorruptiononthehostcountrysabilitytoattractfdi AT danli themoderatingeffectofhomecountrycorruptiononthehostcountrysabilitytoattractfdi AT fernandoribeiroserra themoderatingeffectofhomecountrycorruptiononthehostcountrysabilitytoattractfdi AT manuelportugalferreira moderatingeffectofhomecountrycorruptiononthehostcountrysabilitytoattractfdi AT heldercostacarreira moderatingeffectofhomecountrycorruptiononthehostcountrysabilitytoattractfdi AT danli moderatingeffectofhomecountrycorruptiononthehostcountrysabilitytoattractfdi AT fernandoribeiroserra moderatingeffectofhomecountrycorruptiononthehostcountrysabilitytoattractfdi
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The Moderating Effect of Home Country Corruption on the Host Country’s Ability to Attract FDI

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