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Journal of Economics and Finance

Erschienen in:

01.04.2013

Do MNCs spur financial markets in corrupt host countries?

verfasst von: Mohsen Bahmani-Oskooee, Shady Kholdy, Ahmad Sohrabian

Erschienen in: Journal of Economics and Finance | Ausgabe 2/2013

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Abstract

This study investigates how MNCs can sway the growth of financial markets in the developing countries with prevalent political corruption. Using annual data of panel of 22 developing countries and applying dynamic generalized method of moment (GMM) technique, we find foreign firms can spur financial markets in the developing countries through direct investment. Furthermore, our results indicate the stimulus effect of foreign investment on financial development is stronger in the more corrupt countries.

Vorheriger Artikel Volatility, trade size, and order imbalance in China and Japan exchange traded funds

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To see full detail of M2 and Sargan test see Arellano and Bond (1991)

The countries included are: Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Egypt, Ghana, Guatemala, Honduras, Kenya, Korea, Malaysia, Mexico, Morocco, Nigeria, Pakistan, Paraguay, Philippines, Singapore, Thailand, and Turkey.

Note corruption index 1 represents the highest level and corruption index 6 represents the lowest level of corruption.

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Titel: Do MNCs spur financial markets in corrupt host countries?
verfasst von: Mohsen Bahmani-Oskooee
Shady Kholdy
Ahmad Sohrabian
Publikationsdatum: 01.04.2013
Verlag: Springer US
Erschienen in: Journal of Economics and Finance / Ausgabe 2/2013
Print ISSN: 1055-0925
Elektronische ISSN: 1938-9744
DOI: https://doi.org/10.1007/s12197-011-9199-2

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