Social and Behavioral Sciences Commons^™

The Impact Of Corruption On The Timing And Mode Of Entry By U.S. Firms In China, Jacob Billings

Economics Undergraduate Honors Theses

Since 1979 when China opened its economic borders, it has seen an influx of foreign direct investment that gradually snowballed into enormous annual inflows of capital. Researchers have taken advantage of this event as an incredibly useful testing ground of theories regarding FDI. Using this new data from China, along with data from countries already open to outside investment, many variables, such as GDP, wage, and distance, have been found to consistently correlate in one way or another to particular aspects of FDI inflow, including amount, location, timing, and type.

One such variable that has had some attention is corruption. …