Exploring Regional-Level Impact of Corruption and Crime on Multinational and Domestic Firms: The Evidence from Russia
It is now common knowledge that foreign direct investment (FDI) can be one of the key catalysts for technological development of a country. Indeed, to the extent it entails a transfer of technological, managerial and organisational skills, or provides access to other resources unavailable to certain economies, FDI can have a marked impact on the productivity spillovers, resulting in economic growth as technology transferred by multinationals enterprises (MNEs) stimulates domestic investment (Blomström et al., 20 01) and facilitates improvements in institutions (Smith and Thomas, 2015b). Since FDI constitutes a very large share of capital formation in transition countries (UNCTAD, 2015), the FDI-promoting effect of good institutions should be the key channel in the overall growth and development for these economies.
KeywordsForeign Direct Investment Violent Crime Foreign Firm Domestic Firm Institutional Quality
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