The authors study the impact of corruption in a host country on foreign investors' preference for a joint venture, or a wholly owned subsidiary. Their simple model highlights a basic tradeoff in using local partners. On the one hand, corruption makes the local bureaucracy less transparent, and increases the value of using a local partner to cut through the bureaucratic maze. On the other hand, corruption decreases the effective protection of an investors'...
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INFORMACIÓN
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2000/06/30
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Documento de trabajo sobre investigaciones relativas a políticas
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WPS2360
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1
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1
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2010/07/01
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Corruption and the composition of foreign direct investment - firm-level evidence
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corruption