Corruption Investment

This study of forty two developing countries uses Panel Dynamic Ordinary Least Squares – PDOLS – to examine the relationship between foreign direct investment, corruption and economic growth.

The results suggest that corruption has a significant influence on per capita GDP in the short run but is not significant in the long run. It was also found that lower levels of corruption enhance the impact of foreign direct investment on economic growth. This has important implications for policymakers.

Learn more about this paper: click here

Author(s):

Marie Freckleton, (Department of Economics, University of the West Indies, Kingston, Jamaica); Allan Wright, (Central Bank of Barbados, Bridgetown, Barbados); Roland Craigwell, (Department of Economics, University of the West Indies, Cave Hill, Barbados)

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