Shang?Jin Wei
How Taxing is Corruption on International Investors?
Harvard University
paper studies effect corruption foreign direct investment sample covers bilateral investment twelve source countries 45 host countries two central findings first rise either tax rate multinational firms corruption level host country reduces inward foreign direct investment fdi benchmark estimation increase corruption level singapore mexico would negative effect inward fdi raising tax rate fifty percentage points second american investors averse corruption host countries necessarily average oecd investors spite us foreign corrupt practices act 1977