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<p style="text-align:justify;">This paper aimed to identify which elements related to&nbsp;the corruption impact the Foreign Direct Investment (FDI) regarding developed&nbsp;and developing countries. In order to achieve this purpose, the member&nbsp;countries of the Economic Commission for Latin America and the Caribbean&nbsp;(ECLAC) and the Organisation for Economic Co-operation and Development (OECD)&nbsp;were analysed. It was a quantitative and descriptive survey, with a sample of&nbsp;78 countries and secondary data from 2012 to 2017. The results were estimated&nbsp;by Logistic Regression and Multiple Linear Regression, with Random Effects&nbsp;(RA), chosen by the Breusch-Pagan (1980) and Hausman (1978)&nbsp;tests. It was suggested that the corruption does not impact the inflow of FDI;&nbsp;however, being a developed country, with positive Gross Domestic Product (GDP)&nbsp;growth rates, and institutional quality, have positive impacts on the inflow of&nbsp;the FDI. Moreover, it showed that it is possible to accept, with 95% confidence,&nbsp;the following statement, the more developed a country is, the smaller its&nbsp;Capital inflow of FDI.</p>

The Effects of Corruption on Foreign Investments in Developed and Developing Countries

Original Research 

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