THE EFFECT OF CORRUPTION ON FOREIGN DIRECT INVESTMENT (FDI) INFLOW IN ASIAN COUNTRIES

Abstract

The aim of this study is to investigate the effect of corruption on the foreign direct investment (FDI) inflow inAsian countries. Theeclectic paradigm of Dunning (1977), the secondary data fromthirty Asian countries in the period of 2004 and 2013andfixed effects (FE) and random effects (RE) are used to test the relation between corruption and FDI inflow. Hausman test indicates that applying FE is relevant to this study. The empirical results revealthat corruption is negatively related tothe inflow of FDI inthe Asian countries. The paper provides political implications to strengthen FDI inflow to the Asian countries.

Keywords

• các quốc gia châu á
• đầu tư trực tiếp nước ngoài (fdi)
• tham nhũng