Journal of Commerce and Accounting Research

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Effect of Corruption on FDI Inflows and Economic Growth:An Indian Perspective


Affiliations
1 Post Doctoral Fellow, Indian Council of Social Science Research, Department of Commerce, Aligarh Muslim University, Uttar Pradesh, India
2 Guest Assistant Professor, Dr. Bhim Rao Ambedkar College, University of Delhi, Delhi, India
3 Pursuing MBA from ABV-IIITM, Gwalior, Madhya Pradesh, India
     

   Subscribe/Renew Journal


The aim of the study is to find out the impact of corruption on Foreign Direct Investment (FDI) inflows and economic growth of India. Economic growth and FDI are two of the important factors showing the development scenario in developing economies like India. At the same time, corruption continues to be one of the greatest impediments to economic and social development in these economies. The present paper examines the effects of corruption on FDI inflows and economic growth by using secondary data over the period of 1995 to 2017. Ordinary Least Squares regression has been applied as the main technique for the study. The present study contributes to the existing literature by defining the relationship between corruption, FDI inflows and economic growth in Indian aspect. Further, an endeavor has been made to comprehend that how corruption influences FDI decision and economic growth of Indian economy.

Keywords

Corruption, Foreign Direct Investment, India, Economic Growth.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Ackerman, S. R. (1997). The political economy of corruption. Corruption and the global economy, Institute for International Economics. Retrieved from http://www.adelinotorres.info/economia/a_economia_politica_da_co rrup%C3%A7ao.pdf

  • Azam, M., & Ahmad (2013). The effects of corruption on foreign direct investment inflows: Some empirical evidence from less developed countries. Journal of Applied Sciences Research, 9(6), 3462-3467. Retrieved from https://www.researchgate.net/publication/273757866.The Effects of Corruption on FDI Inflows Some Empirical Investigation from Less Developed Countries.

  • Bayar, Y., & Alkabarov, N. (2016). Corruption and foreign direct investment inflows in emerging market economies. Ecoforum, 5(2), (9), 303-308. Retrieved from http://ecoforumjournal.ro/index.php/eco/article/view/431/270

  • Gasanova, A., Medvedev, A. N., & Komotski, E. I. (2017). The assessment of corruption impact on the inflow of foreign direct investment. American Institute of Physics. Retrieved from https://aip.scitation.org/doi/10.1063/1.4981951

  • Habib, M., & Zurawicki, L. (2002). Corruption and foreign direct investment. Journal of International Business Studies, 33(2), 291-307.

  • Hasan, M., Rahman, M. N., & Iqbal, B. A. (2017). Corruption and FDI inflows: Evidence from India and China. Mediterranean Journal of Social Sciences, 8(4), 173-182. Retrieved from http://www.mcser.org/journal/index.php/mjss/article/viewFile/10029/9661 IMF, “Balance of Payment Manual”. Page 86.

  • Keuleers, P. (2017). Fighting corruption for global peace, development and security, United Nations Development Programme. Retrieved from http://www.undp.org /content/ undp/en/home/blog/2017/fighting-corruption-for-global-peace--development-and-security.html

  • Lawal, G. (2007). Corruption and development in Africa: Challenges for development and economic change. Humanity and Social Science Journals, 2(1), 01-07.

  • Ohlsson, M. H. (2007). Impact of corruption on FDI - A cross country analysis (Master thesis within Economics), Jonkoping International Business School, Jonkoping University. Retrieved from http://www.diva-portal.org/smash/get/diva2:611227/FULLTEXT01.pdf

  • Quazi, R. M. (2014). Corruption and foreign direct investment in East Asia and South Asia: An econometric study. International Journal of Economics and Financial Issues, 4 (2), 231-242. Retrieved from https://www.econjournals.com/index.php/ijefi /article/ viewFile/ 695/pdf

  • Rahman, N. H. A., Romli, N., Ismail, W. M. W., Romaiha, N. R., & Roseli, N. H. M. (2015). Corruption, foreign direct investment and economic growth: Evidence from ASEAN-5 perspective. International Journal of Business Management and Economic Studies, 2(1), 1-18. Retrieved from https://www.researchgate.net/publication/ 299738113_Corruption_foreign_direct_investment_and_economic_growth_Evidence_from_ASEAN-5_perspective

  • Ravi, S. (2015). Does corruption in a country affect the foreign direct investment? A study of rising economic super powers China and India. Open Journal of Social Sciences, 3, 99-104. Retrieved from https://file.scirp.org/pdf/JSS_2015071612005200.pdf

  • Sadig, A. (2009). The effects of corruption on FDI inflows. Cato Journal, 29(2), 267-294. Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2264898

  • Sukhtankar, S., & Milan, V. (2015). Corruption in India: Bridging research evidence and policy options, brookings-NCAER India policy forum 2014. Retrieved from https://www.dartmouth.edu/~sandip/Sukhtankar-Vaishnav-Corruption-IPF_Full.pdf

  • Tokunova, S. (2014). A Comparative study on the effects of corruption on FDI (Master thesis), Erasmus School of Economics, Erasmus University of Rotterdam. Retrieved from https://thesis.eur.nl/pub/15948/

  • Teksoz, S. U. (2006). Corruption and foreign direct investment: An empirical analysis, PhD dissertation, Munich Graduate School of Economics. Retrieved from http://www.edge-page.net/jamb2004/teksoz.pdf

  • Tosun, M. U., Yurdakul, M. O., & İyidogan, P. V. (2014). The relationship between corruption and foreign direct investment inflows in Turkey: An empirical examination. Transylvanian Review of Administrative Sciences, 42, 247-257. Retrieved from https://www.researchgate.net/publication/287786078_The_Relationship_Between_Corruption_and_Foreign_Direct_Investment_Inflows_in_Turkey_An_Empirical_Examination

  • Udenze, O. (2014). The effect of corruption on foreign direct investments in developing countries. The Park Place Economist, 22(1), 86-95. Retrieved from https://digitalcommons.iwu.edu/cgi/viewcontent.cgi?referer=https://www.google.co.in/&httpsredir=1&article=1416&context=parkplace

  • Wei, S.-J. (1997). Why is corruption so much more taxing than tax? Arbitrariness kils, NBER Working Paper, No. 6255. doi. 10.3386/w6255

  • World Investment Report. (2018). Investment and new industrial policies. United Nations Conference on Trade and Development. Retrieved from https://unctad.org/en/PublicationsLibrary/wir2018_overview_en.pdf

  • Bayar, Y., & Özel, H. A. (2014). Electricity consumption and economic growth in emerging economies. Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, 4(2), 1-15.

  • Yuan, J. (2016). How corruption affect foreign direct investment (Master thesis), Aalborg University. Retrieved from https://projekter.aau.dk/projekter/files/227120531/Master_ thesis _J.Yuan_.pdf


Abstract Views: 263

PDF Views: 0




  • Effect of Corruption on FDI Inflows and Economic Growth:An Indian Perspective

Abstract Views: 263  |  PDF Views: 0

Authors

Arti Yadav
Post Doctoral Fellow, Indian Council of Social Science Research, Department of Commerce, Aligarh Muslim University, Uttar Pradesh, India
Dipika Sahu
Guest Assistant Professor, Dr. Bhim Rao Ambedkar College, University of Delhi, Delhi, India
Abhishek Singh
Pursuing MBA from ABV-IIITM, Gwalior, Madhya Pradesh, India

Abstract


The aim of the study is to find out the impact of corruption on Foreign Direct Investment (FDI) inflows and economic growth of India. Economic growth and FDI are two of the important factors showing the development scenario in developing economies like India. At the same time, corruption continues to be one of the greatest impediments to economic and social development in these economies. The present paper examines the effects of corruption on FDI inflows and economic growth by using secondary data over the period of 1995 to 2017. Ordinary Least Squares regression has been applied as the main technique for the study. The present study contributes to the existing literature by defining the relationship between corruption, FDI inflows and economic growth in Indian aspect. Further, an endeavor has been made to comprehend that how corruption influences FDI decision and economic growth of Indian economy.

Keywords


Corruption, Foreign Direct Investment, India, Economic Growth.

References