Corruption and Foreign Direct Investment: The Case of South Asia

Shah, M. H. (2018). Corruption and foreign direct investment: The case of South Asia? PUTAJ - Humanities and Social Sciences, 25(1), 1-16.

16 Pages Posted: 16 Apr 2019

See all articles by Mumtaz Hussain Shah

Mumtaz Hussain Shah

Institute of Management Studies, University of Peshawar

Date Written: June 2018

Abstract

This paper empirically investigates the influence of corruption, bureaucratic quality and government stability on inward Foreign Direct Investment (FDI) to major SAARC nations including Bangladesh, India, Pakistan and Sri Lanka over the period of 1985-2008. Owing to the long-term relationship with the host, absence of corruption and bureaucratic interventions are crucial location advantages of host countries, especially in case of countries lacking abundant natural resources to attract foreign investors. The results through random effects panel estimation method indicate the significant effects of absence of corruption, honest public office holders, efficient bureaucracy and government stability for the foreign direct investors in SAARC nations.

Keywords: FDI, Corruption, Bureaucratic Quality, Government Stability, SAARC

JEL Classification: C330, F210, F230, K420, M160

Suggested Citation

Shah, Mumtaz Hussain, Corruption and Foreign Direct Investment: The Case of South Asia (June 2018). Shah, M. H. (2018). Corruption and foreign direct investment: The case of South Asia? PUTAJ - Humanities and Social Sciences, 25(1), 1-16., Available at SSRN: https://ssrn.com/abstract=3356364

Mumtaz Hussain Shah (Contact Author)

Institute of Management Studies, University of Peshawar ( email )

University Road
Peshawar, Khyber Pukhtoon Khwa 25125
Pakistan

HOME PAGE: http://www.uop.edu.pk/departments/?q=Institute-of-Management-Studies

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