Political risk in private participation projects: The effects of political discretionality and corruption

Jiménez, Alfredo; Bayraktar, Seçil

doi:10.1002/tie.22120

Cited by 12 publications

(10 citation statements)

References 85 publications

(121 reference statements)

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“…The independent variable is the trading partner's level of corruption. We used two proxies for corruption at the country level: (i) the World Governance Indicators' (WGI) Corruption Index, and (ii) Transparency International's (TI) Corruption Perception Index (Habib & Zurawicki, 2002; Hakimi & Hamdi, 2017; Hayakawa, Kimura, & Lee, 2013; Jimenez & Bayraktar, 2020; Okada & Samreth, 2012; Osabutey & Okoro, 2015; Schudel, 2008; Thakur & Kannadhasan, 2019). We rescaled both indicators to simplify the interpretation of the coefficients (see Table 2 for details).…”

Section: Methodsmentioning

confidence: 99%

Corruption, foreign aid, and international trade

Bahoo

Alon

Floreani

2022

Thunderbird Intl Bus Rev

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Corruption has varying effects on international trade flows. Through the lenses of the institutional and transaction costs theories, we propose a novel institutional analysis of foreign aid as a formal institution that moderates the negative impact of corruption on international trade. We investigate this framework using a sample of the imports and exports of 30 Organization for Economic Co‐operation and Development (OECD) member countries and their 150 trading partners from 1995 to 2018. We analyze two main types of bilateral foreign aid within this framework: official development assistance and aid for trade. We present three main findings. First, the trading partners' corruption has a negative impact on OECD bilateral imports and exports. Second, both forms of foreign aid moderate the negative effect of the trading partners' corruption on OECD countries' exports. These findings confirm that OECD member countries are willing to export to very corrupt countries. Third, official development assistance does not moderate the relationship between corruption and imports, meaning that OECD countries do not import from corrupt locations. However, aid for trade still moderates the negative impact of corruption on OCED countries' imports. Overall, we confirm that foreign aid negatively moderates the adverse effect of corruption on exports but not on imports. Thus, foreign aid as a formal institution deserves more attention from OECD policymakers and managers of MNEs as a mechanism for reducing corruption and boosting international trade.

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Section: Methodsmentioning

confidence: 99%

Corruption, foreign aid, and international trade

Bahoo

Alon

Floreani

2022

Thunderbird Intl Bus Rev

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“…In case of the PPI projects, which are usually led by foreign investors, the consequences of the corruption are more drastic due to their lack of familiarity to local context, relational and transactional costs (Henisz and Delios, 2001). Moreover, political stability brought consistency to county policies (Jimenez and Bayraktar, 2020), boost foreign Managing private participation direct investment and business activities, (Li and Liu, 2005), which has positive impact on the project success. On the other hand, the uncertainty of political events, such as regime changes, coups, revolution and political violence, leads to instability in the market and changes in policies, which negatively impacts projects (Chang et al, 2018).…”

Section: Resultsmentioning

confidence: 99%

An enhanced framework for reliably managing private participation in infrastructure ICT projects in developing countries

Ayat

Qureshi

Kang

2022

JEDT

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Purpose The purpose of this study is to propose an improved framework for managing Private Participation in Infrastructure ICT (PPI-ICT) projects in the context of developing countries as the requirements to manage them are different in several aspects. Design/methodology/approach The framework has been proposed based on an exhaustive literature review and statistical analysis of the PPI-ICT projects’ data set using logistic regression, F-test and student’s t-test. The proposed framework was also applied to the PPI-ICT projects. Findings The framework is an extension to NTCP (novelty, technology, complexity and pace) approach by including extrinsic factors such as income of the country, climate risk, religious diversity, political stability, regularity quality and control of corruption. The proposed framework was used to analyze project characteristics and their external conditions in the context of developing countries. Based on the analyses, the authors have presented a detailed set of recommendations for project managers, practitioners and governments to improve the success rate of these projects. Originality/value The major contribution of this study is the framework, which encompasses the NTCP model as well as extrinsic characteristics of PPI-ICT projects. The proposed framework is meant to assist the project managers to comprehend the project characteristics and its external environment to identify an adequate approach for managing projects successfully.

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“…Consequently, FDI research should focus more on cultural differences (which sometimes, indeed, has already been included) (Dikova et al , 2019; Sampath and Rahman, 2019) rather than on the corruption measurement. The latter might be effectively replaced with more objective measures, for instance the World Governance Indicator (Jimenez and Bayraktar, 2020; Ozili, 2019).…”

Section: Discussionmentioning

confidence: 99%

“…Adomako et al (2020) analyzed the effects of perceived corruption in small and medium-sized enterprises’ home countries and the level of their business process digitization. Jimenez and Bayraktar (2020) examined the effects of corruption and political discretionality on the probability of completion of a private project. Sadeghi et al (2019) considered the impact of corruption and institutions on international entrepreneurship.…”

Section: Literature Reviewmentioning

confidence: 99%

How far are we from understanding corruption? The effect of cultural distance on corruption perception

Szymanski

Valdovinos

Kaltenecker

2021

cpoib

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Purpose This study aims to examine the relationship between cultural distances between countries and their scores in the Corruption Perception Index (CPI), which is the most commonly used measure of corruption in international business (IB) research. Design/methodology/approach The authors applied fixed-effect (generalized least squares) statistical modeling technique to analyze 1,580 year-country observations. Findings The authors found that the CPI score is determined to a large extent by cultural distances between countries, specifically the distance to the USA and to Denmark. Research limitations/implications CPI is often used as a sole measure of state-level corruption in IB research. The results show that the measure is significantly influenced by cultural differences and hence it should be applied with great caution, preferably augmented with other measures. Originality/value To the best of the authors’ knowledge, this is the first study to look at cultural distances as determinants of CPI score. The authors empirically test whether the CPI is culturally biased.

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Political risk in private participation projects: The effects of political discretionality and corruption

Cited by 12 publications

References 85 publications

Corruption, foreign aid, and international trade

Corruption, foreign aid, and international trade

An enhanced framework for reliably managing private participation in infrastructure ICT projects in developing countries

How far are we from understanding corruption? The effect of cultural distance on corruption perception

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