Revisiting the nexus among foreign direct investment, corruption and growth in developing and developed markets

Qureshi, Fiza; Qureshi, Saba; Vo, Xuan Vinh; Junejo, Ikramuddin

doi:10.1016/j.bir.2020.08.001

Cited by 60 publications

(43 citation statements)

References 51 publications

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“…Finally, it is revealed that tariff rate and non-tariff barriers, which are dimensions of Trade Freedom, and restrictions on investments, payments, transfers, and capital transactions, which are dimensions of Investment Freedom, have a significant impact on the corruption in this study. The significant impact of Trade Freedom and Investment Freedom on Corruption is frequently emphasized in the literature (Shirazi, 2020;Cooray et al, 2020;Smidova, 2020;Qureshi et al, 2020;Zheng & Xiao, 2020). Similar to the studies in the literature, a positive correlation between Trade Freedom, Investment Freedom, and Corruption is revealed in this study.…”

Section: Discussionsupporting

confidence: 87%

The Role of Economic Freedom in Interpreting Corruption Perception

Depren

Yangın

2021

RIMCIS

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The main purpose of the study is to examine the nexus between corruption and economic freedom to determine the most influencing factors to be focused on to reduce corruption. With this aim, two different machine learning algorithms are performed to find out the single effect, two-way, and three-way interaction effects of factors affecting corruption. As a result of the analysis, tax burden, government integrity, and government spending are the main indicators to be focused on to improve corruption steadily. Besides, critical thresholds of the tax burden, government integrity, and government spending are 83.3, 50.9, and 40.6, respectively. Since there are a limited number of studies to predict corruption by machine learning algorithms in the extant literature, this research provides highly detailed information to policy-makers where they can focus on reducing corruption perception.

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Section: Discussionsupporting

confidence: 87%

The Role of Economic Freedom in Interpreting Corruption Perception

Depren

Yangın

2021

RIMCIS

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“…By using polynomial linear regression model, they found the existence of pollution halo hypothesis however their findings were not successful to confirm the Environmental Kuznets Curve. Likewise, (Qureshi, Qureshi, Vo, & Junejo, 2020) show that financial development significantly attracts foreign direct investment in these countries while institutional quality plays a significant role as a moderator in this association.…”

Section: Literature Reviewmentioning

confidence: 90%

Institutions Powers, financial development and environmental factors influence on Carbon emission: Evidence from a Global Perspective

Khan

Weili

Khan

2021

Preprint

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This study explores the moderating power of institutional quality on carbon emission through renewable energy consumption, foreign direct investment, economic growth and financial development in the globe for the period of 2002 to 2019. By using two Step System Generalized Method of Moments, the results illustrate that renewable energy usage and foreign direct investment inflow enhance environmental quality while financial development and economic growth lowers environmental quality in the panel. The results shows that quality institutions in countries are still not yet adequate to defend the harmful impact of every environmental factor and protect environment however, the interaction term of institutional quality confirms the significant moderating effect of all explanatory variables on environmental quality in the panel. The findings also confirm the existence of Environmental Kuznets Curve and evidence the pollution halo hypothesis. The findings of this paper can be useful for policy makers whereas conducting stricter environmental regulation.

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“…As such, this group of developing countries could increase their level of sustainable development by increasing their control of corruption, which could attract more investment. Considering both hypotheses, note that corruption must not be assumed as a driver for sustainable development, as it can represent long-term adverse effects that would inhibit future investments, thus undermining the growth of economies [ 100 ].…”

Section: Discussionmentioning

confidence: 99%

Is the Relocation of Polluting Industries Prompted by FDI Flow and Stock, Globalisation, Corruption and Regulation?

Leal

Caetano

Marques

2021

IJERPH

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Can globalisation and foreign direct investment shape sustainable development? Foreign direct investment is one of the main drivers for the transfer of polluting industries. With this in mind, the main objective of this research is to identify the role played by foreign direct investment (flow and stock), globalisation (de jure and de facto), corruption and regulatory quality in environmental degradation and sustainable development. To accomplish this objective, and to link the relationships under analysis to the level of development, a comparison between a group of developing countries and a group of developed ones was performed. The results confirm the suitability of the division of the countries by revealing various effects. This analysis was conducted from 1996 to 2017 and by recurring to the Autoregressive Distributed Lag model. This study proves that foreign investors play a vital role in reaching sustainable development. Measures must be implemented to eliminate the distortions that cause a company based in a country with strict environmental regulations to relocate its production to one with lax environmental regulations. However, these measures need to be combined with complementary measures that encourage developing economies to agree to a possible slowdown in their economic growth if sufficiently compensated for this reduced growth.

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Revisiting the nexus among foreign direct investment, corruption and growth in developing and developed markets

Cited by 60 publications

References 51 publications

The Role of Economic Freedom in Interpreting Corruption Perception

The Role of Economic Freedom in Interpreting Corruption Perception

Institutions Powers, financial development and environmental factors influence on Carbon emission: Evidence from a Global Perspective

Is the Relocation of Polluting Industries Prompted by FDI Flow and Stock, Globalisation, Corruption and Regulation?

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