CORRUPTION AND FOREIGN DIRECT INVESTMENT INFLOWS IN EMERGING MARKET ECONOMIES

Yilmaz BAYAR, Naib ALAKBAROV

Abstract


This study investigates the interaction between corruption and foreign direct investment inflows in 23 emerging market economies during the period 2002-2014 by employing Westerlund-Durbin-Hausman (2008) cointegration test. We found that control of corruption and rule of law had no statistically significant impact on attraction of foreign direct investments in overall panel.


Keywords


Foreign direct investment inflows, control of corruption, rule of law, panel data analysis

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