Sunshine or Curse? Foreign Direct Investment, the OECD Anti-Bribery Convention, and Individual Corruption Experiences in Africa

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Title: Sunshine or Curse? Foreign Direct Investment, the OECD Anti-Bribery Convention, and Individual Corruption Experiences in Africa
Authors: Brazys, SamuelKotsadam, Andreas
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Date: Dec-2020
Online since: 2021-09-24T15:22:24Z
Abstract: It remains unclear if foreign direct investment (FDI) benefits local citizens in host countries. Combining geo-referenced FDI data and household level surveys, this paper uses spatial-temporal techniques to assess how FDI impacts individual corruption experiences. We investigate if this relationship is conditional on the corruption levels, or engagement with the OECD's anti-bribery convention (ABC), of the FDI's source country. We find evidence that FDI flows reduce individual bribery experiences, but only when existing levels of corruption are high. We find it is FDI from comparatively more corrupt, and non-ABC engaging, countries that locates to areas of high corruption. Further, FDI appears to improve both the employment prospects and financial positions of local households. Collectively, we argue that these results suggest that individual empowerment via a wealth effect, rather than spillovers from firm professionalization or regulatory pressure mechanisms, is what stems individual corruption experiences.
Funding Details: European Commission Horizon 2020
University College Dublin
Type of material: Journal Article
Publisher: Oxford University Press
Journal: International Studies Quarterly
Volume: 64
Issue: 4
Start page: 956
End page: 967
Copyright (published version): 2020 the Authors
Keywords: CorruptionEconomic underdevelopmentPolitical underdevelopmentForeign direct investmentDangote Cement Zambia
DOI: 10.1093/isq/sqaa072
Language: en
Status of Item: Peer reviewed
ISSN: 0020-8833
This item is made available under a Creative Commons License:
Appears in Collections:Politics and International Relations Research Collection

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