Browsing by Subject "Foreign Direct Investment"

Now showing 1 - 3 of 3
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    Foreign Direct Investors as Agents of Economic Transition: An Instrumental Variables Analysis
    (Quarterly Journal of Political Science, 2009-03-19) Malesky, EJ
    Previous empirical analysis has noted a correlation between Foreign Direct Investment (FDI) and economic reformin Eastern Europe and the Former Soviet Union, but has attributed the relationship to investors rewarding countries after reform decisions. Little attention has been paid to the fact that investors' lobbying efforts may actually influence reform choices. This paper finds a positive effect of FDI on reform progress through apanel analysis of investor influence in 27 transition states (1991-2004). To address endogeneity bias, the exogenous portion of a country's exchange rate movement is used as an instrument in a two-stage procedure. The underlying counterfactual comparison that results from this approach is between two similarly situated countries, but where one country experienced a large shift in the share of FDI in its economy as a result of changes in the international economy and the other did not. Further analysis reveals that the relationship is particularly strong in the manufacturing and service sectors, but does not hold for construction, utilities, or natural resource based projects. © 2009 E. J. Malesky.
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    Monopoly Money: Foreign Investment and Bribery in Vietnam, a Survey Experiment
    (American Journal of Political Science, 2015-02) Malesky, EJ; Gueorguiev, DD; Jensen, NM
    ©2014, Midwest Political Science Association. Prevailing work argues that foreign investment reduces corruption, either by competing down monopoly rents or diffusing best practices of corporate governance. We argue that the mechanisms generating this relationship are not clear because the extant empirical work is too heavily drawn from aggregations of total foreign investment entering an economy. Alternatively, we suggest that openness to foreign investment has differential effects on corruption even within the same country and under the same domestic institutions over time. We argue that foreign firms use bribes to enter protected industries in search of rents, and therefore we expect variation in bribe propensity across sectors according to expected profitability. We test this effect using a list experiment embedded in three waves of a nationally representative survey of 20,000 foreign and domestic businesses in Vietnam, finding that the effect of economic openness on the probability to engage in bribes is conditional on policies that restrict investment.
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    Rent(s) Asunder: Sectoral Rent Extraction Possibilities and Bribery by Multi-National Corporations
    (2011) Gueorguiev, Dimitar D; Malesky, Edmund J; Jensen, Nathan M