Date Log
Do Corruption and Macoroeconomics Variables Can Influence Foreign Direct Investment ?
Corresponding Author(s) : Suci Alpika Fitri
Proceedings Universitas Muhammadiyah Yogyakarta Undergraduate Conference,
Vol. 1 No. 1 (2021): Engaging Youth in Community Development to Strengthen Nation's Welfare
Abstract
Foreign direct investment is a key role importan to encourage economics system for developed and developing countries. foreign direct investment can show dynamic economics and it can build the good relationship with other countries, transfer of technology and knowledge. Higher the level of investment can improve the financial institutuin and economics activities. This study investigates the effect of control of currption on foeign drect investment inflows (FDI) by usingvariables macroeconomics indicators, which include Corruption Perception Index (CPI), Political Stability (POL), Inflation (INF), Exchange Rate (EXR) , Financial Development (FD). This study reveals that the significant factors control of corruption on foreign direct investment in the top 8th muslim countires (Malaysia, Saudi Arabia, UAE, Indonesia, Jordan, Bahrain, and Qatar). Using data from United Naional Conference Trade and Development (UNCTAD) , World Bank and IMF (International Monetary Fund) cover the time period in 2015-2019. This study use the least dummy variales square (LDVS) regression panel data analysis find that effect of corruption on FDI is significantly negative by using real exchange rate currency and the positive effect by using domestic exchange rate (USD). Furthermore, the result of this study give more knowledge of the control of corruption on FDI dynamics in top 8th muslim countries.
Keywords
Download Citation
Endnote/Zotero/Mendeley (RIS)BibTeX
- Abed, G., and Davoodi, H. (2000) “Corruption, Structural Reforms and Economics Performance in the Transition Economies. “IMF Working Paper No. 132. Washington: International Monetary Fund.
- Adams, S. (2009), “Foreign direct investment, domestic investment, and economic growth in SubSaharan Africa”, Journal of Policy Modeling, Vol. 31 No. 6, pp. 939-949.
- Aïssa,M.S.B., Olivier,M., Pereau,J.C., “Modelling inflation persistence with periodicity changes in fixed and predetermined prices models” , Economic Modelling, 24 (9) : 823-838 , (2007). https://doi.org/10.1016/j.econmod.2007.02.008
- Aharoni, Y. (1966), “The Foreign Investment Decision Process”, Thunderbird International Business Review, 8(4), 13-14.
- Albassam, Waleed. Corporate governance, voluntary disclosure and financial performance: an empirical analysis of Saudi listed firms using a mixed-methods research design. Diss. University of Glasgow, 2014.
- Alfaro, L., Chanda, A., Kalemli-Ozcan, S., Sayek, S. (2006), How Does Foreign Direct Investment Promote Economic Growth? Exploring the Effects of Financial Markets on Linkages (No. W12522). National Bureau of Economic Research
- Alfaro, L., Kalemli-Ozcan, S., & Sayek, S. (2009). FDI, productivity and financial develop- ment. The World Economy, 32(1), 111?135.
- Al-Marhubi, F.A. (2000) Corruption and ináationîEconomics Letters 66, 199 ñ 202.
- Al-Sadiq A. (2009) The Effects of Corruption on FDI Inflows, Cato Journal, vol. 29, no.2:267-294.
- Akça, H., Ata, A. Y. & Karaca, C. Inflation and corruption relationship: Evidence from panel data in developed and developing countries. Int. J. Econ. Financ. Issues 2, 281–295 (2012).
- Ang, J. B. (2008a). Determinants of foreign direct investment in Malaysia. Journal of Policy Modeling, 30(1), 185–189.
- Anwar, S., & Nguyen, L. P. (2011). Foreign direct investment and export spillovers: Evidence from Vietnam. International Business Review, 20, 177–193
- Aschauer, David, and Jeremy Greenwood. 1983. A further exploration in the theory of exchange rate determination. Journal of Political Economy 91:868–75.
- Baharumshah, A. and M. Thanoon (2006). Foreign capital flows and economic growth in East Asian countries, China Economic Review. 17: 70-83.
- Basi, R. S. (1963), Determinants of United States Private Direct Investment in Foreign Countries, Kent, OH: Kent State University Press.
- Bayar, Y., Ozel, H.A. (2014) Determinants of Foreign Direct Investment Inflows in the Transition Economies of European Union, International
- Bayar, Yilmaz, and Naib Alakbarov. "Corruption and foreign direct investment inflows in emerging market economies." Ecoforum Journal 5.2 (2016).
- Beck, P., Maker. M. (1986), A Comparison of Bribery and Bidding in Thin Markets. Economic Letters, 20, 1-5.
- Bitzenis, A. (2006). Decisive barriers that affect multinationals business in a transition Country. Global Business & Economics Review, 8(1–2), 87–118.
- Bhandari, R., Dhakal, D., Pradhan, G., & Upadhyaya, K. (2007). Foreign Aid, FDI and economic growth in East European countries. Economics Bulletin, 6, 1–9
- Blomström, M and A Kokko (1998). Multinational corporations and spillovers. Journal of Eco- nomic Surveys, 12(3), 247–277.
- Blonigen, Bruce A. "A review of the empirical literature on FDI determinants." Atlantic economic journal 33.4 (2005): 383-403.
- Borensztein, E.; J. De Gregorio; and J.-W. Lee. 1998. "How Does Foreign Direct Investment Affect Economic Growth?" Journal of International Economics 45, no. 1: 115-135.
- Calderon, C., 2004. Trade Openness and Real Exchange Rate Volatility: Panel Data Evidence, Central Bank of Chile, working papers, p. 294
- Campa, J (1993). Entry by foreign firms in the United States under exchange rate uncertainty. Review of Economics and Statistics, 75, 614–622.
- Campos, J.E. and Lien, D., ‘The Impact of Corruption on Investment: Predictability Matters’, 1999, World Development, vol. 27, no. 6, pp. 1059-1076.
References
Abed, G., and Davoodi, H. (2000) “Corruption, Structural Reforms and Economics Performance in the Transition Economies. “IMF Working Paper No. 132. Washington: International Monetary Fund.
Adams, S. (2009), “Foreign direct investment, domestic investment, and economic growth in SubSaharan Africa”, Journal of Policy Modeling, Vol. 31 No. 6, pp. 939-949.
Aïssa,M.S.B., Olivier,M., Pereau,J.C., “Modelling inflation persistence with periodicity changes in fixed and predetermined prices models” , Economic Modelling, 24 (9) : 823-838 , (2007). https://doi.org/10.1016/j.econmod.2007.02.008
Aharoni, Y. (1966), “The Foreign Investment Decision Process”, Thunderbird International Business Review, 8(4), 13-14.
Albassam, Waleed. Corporate governance, voluntary disclosure and financial performance: an empirical analysis of Saudi listed firms using a mixed-methods research design. Diss. University of Glasgow, 2014.
Alfaro, L., Chanda, A., Kalemli-Ozcan, S., Sayek, S. (2006), How Does Foreign Direct Investment Promote Economic Growth? Exploring the Effects of Financial Markets on Linkages (No. W12522). National Bureau of Economic Research
Alfaro, L., Kalemli-Ozcan, S., & Sayek, S. (2009). FDI, productivity and financial develop- ment. The World Economy, 32(1), 111?135.
Al-Marhubi, F.A. (2000) Corruption and ináationîEconomics Letters 66, 199 ñ 202.
Al-Sadiq A. (2009) The Effects of Corruption on FDI Inflows, Cato Journal, vol. 29, no.2:267-294.
Akça, H., Ata, A. Y. & Karaca, C. Inflation and corruption relationship: Evidence from panel data in developed and developing countries. Int. J. Econ. Financ. Issues 2, 281–295 (2012).
Ang, J. B. (2008a). Determinants of foreign direct investment in Malaysia. Journal of Policy Modeling, 30(1), 185–189.
Anwar, S., & Nguyen, L. P. (2011). Foreign direct investment and export spillovers: Evidence from Vietnam. International Business Review, 20, 177–193
Aschauer, David, and Jeremy Greenwood. 1983. A further exploration in the theory of exchange rate determination. Journal of Political Economy 91:868–75.
Baharumshah, A. and M. Thanoon (2006). Foreign capital flows and economic growth in East Asian countries, China Economic Review. 17: 70-83.
Basi, R. S. (1963), Determinants of United States Private Direct Investment in Foreign Countries, Kent, OH: Kent State University Press.
Bayar, Y., Ozel, H.A. (2014) Determinants of Foreign Direct Investment Inflows in the Transition Economies of European Union, International
Bayar, Yilmaz, and Naib Alakbarov. "Corruption and foreign direct investment inflows in emerging market economies." Ecoforum Journal 5.2 (2016).
Beck, P., Maker. M. (1986), A Comparison of Bribery and Bidding in Thin Markets. Economic Letters, 20, 1-5.
Bitzenis, A. (2006). Decisive barriers that affect multinationals business in a transition Country. Global Business & Economics Review, 8(1–2), 87–118.
Bhandari, R., Dhakal, D., Pradhan, G., & Upadhyaya, K. (2007). Foreign Aid, FDI and economic growth in East European countries. Economics Bulletin, 6, 1–9
Blomström, M and A Kokko (1998). Multinational corporations and spillovers. Journal of Eco- nomic Surveys, 12(3), 247–277.
Blonigen, Bruce A. "A review of the empirical literature on FDI determinants." Atlantic economic journal 33.4 (2005): 383-403.
Borensztein, E.; J. De Gregorio; and J.-W. Lee. 1998. "How Does Foreign Direct Investment Affect Economic Growth?" Journal of International Economics 45, no. 1: 115-135.
Calderon, C., 2004. Trade Openness and Real Exchange Rate Volatility: Panel Data Evidence, Central Bank of Chile, working papers, p. 294
Campa, J (1993). Entry by foreign firms in the United States under exchange rate uncertainty. Review of Economics and Statistics, 75, 614–622.
Campos, J.E. and Lien, D., ‘The Impact of Corruption on Investment: Predictability Matters’, 1999, World Development, vol. 27, no. 6, pp. 1059-1076.