Full Text Available

Note: Clicking the button above will open the full text document at the original institutional repository in a new window.

Corruption distance and FDI in Africa

The majority of empirical studies that investigate the relationship of corruption and FDI tend to find that there is a strong relationship between corruption and FDI, although the findings are mixed in this regard; some have found the opposite while others have resulted in inconclusive results. This...

Full description

Saved in:
Bibliographic Details
Main Author: Tudane, Abiel
Other Authors: Alhassan, Abdul Latif
Format: Thesis
Language:ENG
Published: Research of GSB 2018
Subjects:
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1867613172396982272
access_status_str Open Access
author Tudane, Abiel
author2 Alhassan, Abdul Latif
author_browse Alhassan, Abdul Latif
Tudane, Abiel
author_facet Alhassan, Abdul Latif
Tudane, Abiel
author_sort Tudane, Abiel
collection Thesis
description The majority of empirical studies that investigate the relationship of corruption and FDI tend to find that there is a strong relationship between corruption and FDI, although the findings are mixed in this regard; some have found the opposite while others have resulted in inconclusive results. This paper uses an institutional approach to corruption and seeks to advance the concept of "corruption distance" as it relates to FDI in context of Africa, it therefore investigated the manner in which the perceived level of corruption in the African continent affects the level of FDI counties in Africa are able to attract. The paper analyses corruption and FDI where the home countries are developing economies in Africa in order to obtain a greater insight regarding relationships in African investment using a panel data set of 45 African countries from 2003 to 2013. The research findings support the view that corruption distance has a negative effect on FDI in Africa. Given the levels of corruption in Africa, even expectations that more corrupt countries would be more likely to invest in less corrupt countries where confirmed. Our evidence confirms that the flow of FDI in Africa is mostly influenced by countries who on average are less corrupt that African countries. The paper finds that that there is a negative relationship between corruption and FDI where the home country is less corrupt than the host African country and concludes that the potential for FDI towards Africa to be great if the institutional quality underpinning the investment climate in African countries where to improve.
format Thesis
id oai:open.uct.ac.za:11427/27754
institution University of Cape Town (South Africa)
language ENG
last_indexed 2026-06-10T12:31:54.917Z
license_str Not specified — see source repository
provenance_str_mv Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository
publishDate 2018
publishDateRange 2018
publishDateSort 2018
publisher Research of GSB
publisherStr Research of GSB
record_format dspace
source_str UCTD — University of Cape Town Open Access Repository
spelling oai:open.uct.ac.za:11427/27754 Corruption distance and FDI in Africa Tudane, Abiel Alhassan, Abdul Latif Nko, Edward Development Finance The majority of empirical studies that investigate the relationship of corruption and FDI tend to find that there is a strong relationship between corruption and FDI, although the findings are mixed in this regard; some have found the opposite while others have resulted in inconclusive results. This paper uses an institutional approach to corruption and seeks to advance the concept of "corruption distance" as it relates to FDI in context of Africa, it therefore investigated the manner in which the perceived level of corruption in the African continent affects the level of FDI counties in Africa are able to attract. The paper analyses corruption and FDI where the home countries are developing economies in Africa in order to obtain a greater insight regarding relationships in African investment using a panel data set of 45 African countries from 2003 to 2013. The research findings support the view that corruption distance has a negative effect on FDI in Africa. Given the levels of corruption in Africa, even expectations that more corrupt countries would be more likely to invest in less corrupt countries where confirmed. Our evidence confirms that the flow of FDI in Africa is mostly influenced by countries who on average are less corrupt that African countries. The paper finds that that there is a negative relationship between corruption and FDI where the home country is less corrupt than the host African country and concludes that the potential for FDI towards Africa to be great if the institutional quality underpinning the investment climate in African countries where to improve. 2018-04-05T09:10:59Z 2018-04-05T09:10:59Z 2016 Master Thesis Masters MCom http://hdl.handle.net/11427/27754 ENG application/pdf Research of GSB Faculty of Commerce University of Cape Town
spellingShingle Development Finance
Tudane, Abiel
Corruption distance and FDI in Africa
thesis_degree_str Master's
title Corruption distance and FDI in Africa
title_full Corruption distance and FDI in Africa
title_fullStr Corruption distance and FDI in Africa
title_full_unstemmed Corruption distance and FDI in Africa
title_short Corruption distance and FDI in Africa
title_sort corruption distance and fdi in africa
topic Development Finance
url http://hdl.handle.net/11427/27754
work_keys_str_mv AT tudaneabiel corruptiondistanceandfdiinafrica