Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/190682 
Year of Publication: 
2018
Series/Report no.: 
Kiel Working Paper No. 2118
Publisher: 
Kiel Institute for the World Economy (IfW), Kiel
Abstract: 
Geocoding firm-level data and matching them to georeferenced household survey data, we are the first to analyze whether the presence of foreign investors is associated with changes in local corruption around foreign-owned production facilities in Sub-Saharan African countries. Applying an estimation strategy that explores the spatial and temporal variation in the data, we find that the presence of foreign firms increases bribery among people living nearby. We show this effect to work through two mechanisms, namely via increased economic activity and partly via norm transmission.
Subjects: 
FDI
corruption
georeferenced data
Sub-Saharan Africa
JEL: 
D1
F21
F23
O12
Document Type: 
Working Paper

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