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Tolerable level of corruption for foreign direct investment in Africa

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dc.contributor.author Abotsi, A.K.
dc.contributor.author Iyavarakul, T.
dc.date.accessioned 2019-11-27T15:14:04Z
dc.date.available 2019-11-27T15:14:04Z
dc.date.issued 2015
dc.identifier.other 10.5709/ce.1897-9254.240
dc.identifier.uri http://ir.uew.edu.gh/xmlui/handle/123456789/303
dc.description Published in Contemporary Economics en_US
dc.description.abstract Corruption has become endemic in many African countries and is difficult to eradicate completely; therefore, reducing corruption to a tolerable level that will not deter foreign investors must be the aspiration of all political leaders and stakeholders. This study tries to identify the level of corruption that is tolerable to foreign investors, which is referred to as the Tolerable Level of Corruption for Investment (TLCI). The study proposes that below the TLCI, corruption plays the role of ?sand in the wheels of commerce? and thus has a negative impact on FDI inflows, but above the TLCI, corruption functions to ?grease the wheels? and has a positive impact on FDI inflows. The study is based on secondary data collected from the World Bank World Development Indicators. Using a dynamic panel data estimation technique while controlling for other variables, the estimated TLCI in Africa is -0.27 on the control of corruption scale, which ranges from approximately -2.5 (weak) to 2.5 (strong). Therefore, all African leaders and stakeholders, especially in countries that fall below the TLCI, should intensify their efforts in the fight against corruption to reduce corruption in their respective countries to at least the TLCI to attract foreign investors. en_US
dc.language.iso en en_US
dc.publisher Wyzsza Szkola Finansow i Zarzadzania w Warszawie en_US
dc.relation.ispartofseries Volume : 9;Issue : 3
dc.subject Corruption en_US
dc.subject Foreign direct investment en_US
dc.subject Institutions en_US
dc.subject Tolerable level of corruption for investment en_US
dc.title Tolerable level of corruption for foreign direct investment in Africa en_US
dc.type Article en_US


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