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      Sunshine or Curse? Foreign Direct Investment, the OECD Anti-Bribery Convention, and Individual Corruption Experiences in Africa

      1 , 2

      International Studies Quarterly

      Oxford University Press (OUP)

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          Abstract

          It remains unclear if foreign direct investment (FDI) benefits local citizens in host countries. Combining geo-referenced FDI data and household level surveys, this paper uses spatial-temporal techniques to assess how FDI impacts individual corruption experiences. We investigate if this relationship is conditional on the corruption levels, or engagement with the OECD's anti-bribery convention (ABC), of the FDI's source country. We find evidence that FDI flows reduce individual bribery experiences, but only when existing levels of corruption are high. We find it is FDI from comparatively more corrupt, and non-ABC engaging, countries that locates to areas of high corruption. Further, FDI appears to improve both the employment prospects and financial positions of local households. Collectively, we argue that these results suggest that individual empowerment via a wealth effect, rather than spillovers from firm professionalization or regulatory pressure mechanisms, is what stems individual corruption experiences.

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          Most cited references 70

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            What Have We Learned About the Causes of Corruption from Ten Years of Cross-National Empirical Research?

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              Logistic Regression: Why We Cannot Do What We Think We Can Do, and What We Can Do About It

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                Author and article information

                Contributors
                (View ORCID Profile)
                (View ORCID Profile)
                Journal
                International Studies Quarterly
                Oxford University Press (OUP)
                0020-8833
                1468-2478
                December 2020
                December 07 2020
                October 08 2020
                December 2020
                December 07 2020
                October 08 2020
                : 64
                : 4
                : 956-967
                Affiliations
                [1 ]University College Dublin
                [2 ]Ragnar Frisch Centre for Economic Research, University of Oslo
                Article
                10.1093/isq/sqaa072
                f3d98ed4-f5f9-4bb3-a861-20cea5c953a1
                © 2020

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