Corruption and its Influence on Economy with Focus on Inflow of Foreign Direct Investment

  •  Petr Prochazka    
  •  Mansoor Maitah    
  •  Ales Pachmann    


This paper evaluates theimpactof corruption oneconomic sphere, with special emphasis oninward foreign direct investment(FDI), as investment is oneof the main factorsof economic performance. The impact ofcorruptiononFDI inflowsisstudiedglobally.Based on the researchof contemporary literature, it was found that thelevel of corruptionhasnot clear negativeimpact onFDI, what is leadingto the formulationof the researchobjectives of this work.The results confirmthe88 countriesfor the years2000, 2005and 2011, the existence of anegative relationship betweenthe level of corruptionandFDI inflows, this is a statisticallysignificant relationshipand it isthis relationship furtherquantifiedwithin theregression model.In conclusion, it is proposed to include additionalexplanatoryvariablesin addition tothe degree of corruptionto understanding the causesFDI inflows.

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