Foreign direct investment, corruption and the OECD Anti-Bribery Convention
This paper estimates a dynamic foreign direct investment (FDI) gravity model to explore
the impact of corruption in general and the OECD Anti-Bribery Convention in particular.
The evidence from previous studies in both domains is mixed, probably due to econometric
inconsistencies and misuse of data. The more robust findings are that corruption has
an insignificant or even positive effect on FDI in the general population. However,
adherence to the OECD Anti-Bribery Convention has a clear negative impact on FDI—countries
that adhere reduce investments in corrupt destinations.