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Article

Do Countries with Similar Levels of Corruption Compete to Attract Foreign Investment? Evidence Using World Panel Data

1
Department of Economics and Local Development Institute (IIDL), Universitat Jaume I, Campus del Riu Sec, 12071 Castelló de la Plana, Spain
2
Department of Economics, Faculty of Economics and Business Administration, University of Extremadura, 06071 Badajoz, Spain
3
Departamento de Economía y Hacienda Pública, Universidad Autónoma de Madrid, 28049 Madrid, Spain
*
Author to whom correspondence should be addressed.
Sustainability 2020, 12(15), 6194; https://doi.org/10.3390/su12156194
Received: 12 July 2020 / Revised: 27 July 2020 / Accepted: 29 July 2020 / Published: 31 July 2020
(This article belongs to the Special Issue Public Policies for Sustainability and Sustainable Public Policies)
This paper examines whether foreign direct investment in one country helps to increase foreign investment in other countries with a similar degree of corruption. Our estimates are based on an unbalanced annual panel of 164 countries over the 2005–2015 period. Using spatial econometric techniques, our main findings reveal that foreign investment in one recipient country is complementary to that in countries with similar levels of corruption. Furthermore, our results point to the existence of different circuits of foreign direct capital among countries that are determined by corruption similarity. These results suggest important policy implications for countries aiming to attract foreign investment. View Full-Text
Keywords: foreign direct investment; sustainable development; corruption similarity; spatial econometrics foreign direct investment; sustainable development; corruption similarity; spatial econometrics
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MDPI and ACS Style

Alamá-Sabater, L.; Fernández-Núñez, T.; Márquez, M.Á.; Salinas-Jimenez, J. Do Countries with Similar Levels of Corruption Compete to Attract Foreign Investment? Evidence Using World Panel Data. Sustainability 2020, 12, 6194. https://doi.org/10.3390/su12156194

AMA Style

Alamá-Sabater L, Fernández-Núñez T, Márquez MÁ, Salinas-Jimenez J. Do Countries with Similar Levels of Corruption Compete to Attract Foreign Investment? Evidence Using World Panel Data. Sustainability. 2020; 12(15):6194. https://doi.org/10.3390/su12156194

Chicago/Turabian Style

Alamá-Sabater, Luisa, Teresa Fernández-Núñez, Miguel Á. Márquez, and Javier Salinas-Jimenez. 2020. "Do Countries with Similar Levels of Corruption Compete to Attract Foreign Investment? Evidence Using World Panel Data" Sustainability 12, no. 15: 6194. https://doi.org/10.3390/su12156194

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