Corruption and foreign direct investment phases: The moderating role of institutions

We examine the effect of corruption and institutions on inward foreign direct investment (FDI) along different investment phases in host countries. We contribute to the literature by distinguishing the propensity and the stock of FDI to better clarify the relationship between corruption and FDI, and by substantiating an integrated formal and informal institution-based view. The results support both the ‘corruption as sand’ theory and the...