The effect of corruption on FDI: A parametric and non-parametric analysis. Barassi, M. R. & Zhou, Y. European Journal of Political Economy, 28(3):302--312, September, 2012.
The effect of corruption on FDI: A parametric and non-parametric analysis [link]Paper  doi  abstract   bibtex   
This paper analyses the effect of corruption on Multinational Enterprises' (MNEs) incentives to undertake FDI in a particular country. We contribute to the existing literature by modelling the relationship between corruption and FDI using both parametric and non-parametric methods. We report that the impact of corruption on FDI stock is different for the different quantiles of the FDI stock distribution. This is a characteristic that could not be captured in previous studies which used only parametric methods. After controlling for the location selection process of MNEs and other host country characteristics, the result from both parametric and non-parametric analyses offer some support for the ‘helping-hand’ role of corruption.
@article{ barassi_effect_2012,
  title = {The effect of corruption on {FDI}: A parametric and non-parametric analysis},
  volume = {28},
  issn = {0176-2680},
  shorttitle = {The effect of corruption on {FDI}},
  url = {http://www.sciencedirect.com/science/article/pii/S017626801200002X},
  doi = {10.1016/j.ejpoleco.2012.01.001},
  abstract = {This paper analyses the effect of corruption on Multinational Enterprises' ({MNEs}) incentives to undertake {FDI} in a particular country. We contribute to the existing literature by modelling the relationship between corruption and {FDI} using both parametric and non-parametric methods. We report that the impact of corruption on {FDI} stock is different for the different quantiles of the {FDI} stock distribution. This is a characteristic that could not be captured in previous studies which used only parametric methods. After controlling for the location selection process of {MNEs} and other host country characteristics, the result from both parametric and non-parametric analyses offer some support for the ‘helping-hand’ role of corruption.},
  number = {3},
  urldate = {2014-08-20TZ},
  journal = {European Journal of Political Economy},
  author = {Barassi, Marco R. and Zhou, Ying},
  month = {September},
  year = {2012},
  keywords = {Corruption, {FDI}, {MNEs}' location choice, Non parametric, Parametric},
  pages = {302--312}
}

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