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Foreign Direct Investments Impact on Economic Growth When Corruption is Present: A Study on Post-Soviet Countries
Jönköping University, Jönköping International Business School.
2017 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

FDI is perceived as a major source of financing for developing countries and also, to be a potential source of economic growth. The purpose of this thesis is to investigate the impact of foreign direct investment on economic growth in 15 post-Soviet countries. This by, firstly, examining the effect of the foreign direct investment on economic growth and secondly, by examining the effect of FDI on economic growth, while taking corruption into account. Also to be investigated is how much FDI affects economic growth as corruption changes. Panel data is used for the regression models and the period examined is between 1999 and 2016. The results of the empirical work indicate that foreign direct investment has a positive effect on economic growth in post-Soviet countries, both when considering FDI by itself and when examining the interaction term between FDI and CPI. It is further found that corruption is perceived to have a positive effect on economic growth as it is “greasing the wheels” rather than “putting sand in them”.

Place, publisher, year, edition, pages
2017. , p. 32
Keywords [en]
International Financial Markets, Empirical Studies of Economic Growth, Corruption, Panel Data Models, Hypothesis Testing: General
National Category
Economics
Identifiers
URN: urn:nbn:se:hj:diva-58976ISRN: JU-IHH-NAA-2-20220287OAI: oai:DiVA.org:hj-58976DiVA, id: diva2:1713062
Subject / course
JIBS, Economics
Supervisors
Available from: 2022-11-24 Created: 2022-11-23 Last updated: 2022-11-24Bibliographically approved

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