• Korea Trade Review
• /
• v.46 no.2
• /
• pp.337-354
• /
• 2021

Several previous studies have not been able to derive consistent research results on the impact of the level of corruption in local countries on foreign direct investment. Therefore, in order to suggest that this study should consider the relative level of corruption rather than the level of absolute corruption, 1) first, examine the moderating effect of the absolute level of corruption on the determinants of foreign direct investment, and 2) examine the moderating effect of the relative corruption on the determinants of foreign direct investment. This study collected 9-year data from 2012 to 2020 based on the Corruption Perceptions Index (CPI) published by Transparency International. A total of 549 observations (country-year) from 82 countries were sampled and a generalized estimation equation (GEE) analysis was performed. As a result of empirical analysis, it was found that the moderating effect of absolute corruption did not appear, whereas the moderating effect of relative corruption reversed the negative (-) relationship between cultural distance and foreign direct investment into a positive (+) relationship. Based on these empirical results, this study suggest that Korean companies need to consider the relative level of corruption with Korea instead of the absolute level of corruption of the investee when conducting foreign direct investment.

• Asia-Pacific Journal of Business
• /
• v.11 no.1
• /
• pp.77-91
• /
• 2020

Purpose - The purpose of this study is to examines the effect of corruption pressure in host country on sequential investment. The study further investigates how the information acquisition capacity of MNEs and the political tie in the host country had a moderating effect on the relationship between corruption and sequential investment. Design/methodology/approach - Ordered logistic regression is hired to analyze 1,260 MNEs' sequential investment in Vietnam. Findings - The empirical results of this study demonstrate the more MNEs perceive the strong level of pressure to be corrupt in the local market, the less they are likely to invest. The information acquisition capacity of MNEs has been shown to mitigate the negative effects of corruption pressures on sequential investments, while the moderating effect of political tie in host country is partially supported. Research implications or Originality - This study identified that the corruption pressures of host countries negatively affect not only MNEs that are entering, but also the ones that have already entered host countries; the corruption discourages any sequential investment for existing MNEs. By suggesting two moderating variables, this study will provide managerial implications for MNEs and managers who face corruption pressure in host countries.

• Korean System Dynamics Review
• /
• v.15 no.4
• /
• pp.29-60
• /
• 2014

As every commentators has noted, bureaucratic corruption, which has complicated causes, is prevalent phenomenon in Korean society. Especially, most people realize that systemic corruption has a strong negative effect on society; however, only few studies reflect on the nature of 'systemic corruption' and it seems that no established theory explains the phenomenon. Thus, this study suggest that we look more carefully into the nature and mechanisms of 'systemic corruption'. Interdisciplinary approach based on the integrated model of structure-behavior to analyse the nature of bureaucratic corruption. The system dynamics method can test the mechanisms of 'systemic corruption'. With this way, the factors generating systemic corruption represent the relationships reinforcing and balancing within system dynamics model. This paper also consider 'isomorphism' and 'dominance' as control mechanisms to systemic corruption. From the CLD(Causal Loop Diagram), three main areas(rent in organization, networking, control mechanisms) are overlapped and it indicates dynamic relationships of systemic corruption in organizations.

• The Journal of Asian Finance, Economics and Business
• /
• v.7 no.10
• /
• pp.629-639
• /
• 2020

The current study explains how corruption, terrorism, political stability and oil price has an effect on on the Iraq stock exchange utilizing corruption perception index as a proxy of corruption, global terrorism index as proxy for terrorism, political stability and oil price with ISX60 index as proxy of stock market for the period (2005-2019) using Ordinary Least Square method. The results show that the level of corruption, terrorism activities and political stability coefficient is significantly positive with Iraq stock exchange. In contrast, the oil price coefficient is significantly negative with Iraq stock exchange, which means that lower levels of corruption, less terrorism activities and more stability in political system have strong influence on stock market development in Iraq. The study concludes that the explanatory variables are important for Iraq stock exchange. Hence, the study suggests the policy makers to develop stock market by implementing policies and strategies to overcome high level of corruption, terrorism activities especially after ISIS/ISIL announcement has been made public. There is a need for transparency and creating stable political environment through good governance practices in order to attract more foreign investment and promote economic development. Factors like terrorism and corruption make economic and political systems unstable and has an adverse effect on on Iraq's stock exchange performance.

• Korea Trade Review
• /
• v.46 no.2
• /
• pp.177-191
• /
• 2021

Based on the existing OFDI (outward foreign direct investment) literature, this study endeavored to verify how the corruption of host countries affects the partner strategy of EMNEs (emerging multinational enterprises) when EMNEs enter global markets through joint ventures. Following the existing literature, this study classified corruption and partner strategies into two categories, respectively. First, the corruption of host country was divided into grand corruption and petty corruption. Second, EMNEs' joint venture partner strategy was divided into home country partner joint venture and host country (i.e., local) partner joint venture. Our hypothesis suggested that the greater the host country's grand corruption, the more EMNEs would choose the host country partner, while the strong petty corruption leads to the preference of home country partner in host country. The hypotheses were verified with a sample of 890 foreign direct investment cases of Chinese multinational companies from 2005 to 2015. As a result of the study, regardless of the degree of corruption, it was found that they prefer joint ventures with home country partners when EMNEs enter the global market through joint ventures.

• International Journal of Computer Science & Network Security
• /
• v.21 no.3
• /
• pp.134-140
• /
• 2021

The development of technology speeds up the process of obtaining information and its analysis to track the level of corruption in different countries and develop countermeasures. This study examines the role of information and analytical support of anti-corruption policy as a tool for government accountability and analysis, evaluation, combating corruption in Eastern Europe. The purpose of the article is to identify the components of the information-analytical system that help reduce the level of corruption. The research methodology is based on a qualitative content analysis of the functioning of information and analytical systems of Ukraine used by anti-corruption bodies. A quantitative analysis of the CPI score was conducted, according to Transparency International, to identify the effectiveness of anti-corruption policies in developing countries. The results show similar trends in countries developing on the effect of the use of information and analytical systems in the implementation of anti-corruption policies, strategies and measures. The strategy to combat corruption mainly involves increasing the independence and powers of anti-corruption bodies. Therefore, the development of information and analytical support is aimed at automating the processes of pre-trial investigations and criminal proceedings, information protection. As a tool for accountability, information and analytical systems may be ineffective due to the abuse of power by higher anti-corruption bodies due to political pressure from elite structures. Restrictions on political will are a major problem for the effectiveness of anti-corruption policies.

• Asia-Pacific Journal of Business
• /
• v.10 no.4
• /
• pp.153-165
• /
• 2019

This paper examined economic liberalization and corruption in ASEAN member affect Korea's foreign direct investment. We use 160 (country-year) observations from ASEAN 10 member countries for a period of 16 years from 2001 to 2016, with the Economic Liberalization Index provided by the Fraser Institute and the corruption recognition index provided by the International Transparency Organization. As results, economic liberalization showed a non-linear(U shaped) effect on foreign direct investment and corruption has a negative effect on foreign direct investment.

• The Journal of the Convergence on Culture Technology
• /
• v.7 no.2
• /
• pp.97-106
• /
• 2021

The issue of controlling police corruption is very important that in terms of public services where police administration is in direct contact with citizens. In this study, individual, organizational, cultural, and legislative factors are classified as independent factor variables that contribute to police corruption, and the effect of these corruption factors on the level of police corruption, and the role of occupational identity and organizational citizenship behavior of police offices in this relationship are analyzed. A survey is conducted on the public citizens for empirical analysis of this study. The results of the empirical analysis are as follows: First, organizational, cultural factors and legal-legislative factors have negative influence on the occupational identity. Second, legislative factors has negative influence on organizational citizenship behavior. Third, organizational, cultural and legislative factors have positive effects on police corruption. Finally, in terms of the effect of corruption factors on organizational citizenship behavior through occupational identity, organizational, cultural and legal-legislative factors had negative mediating effect on it.

• International Journal of Computer Science & Network Security
• /
• v.22 no.9
• /
• pp.169-174
• /
• 2022

The purpose of the study is to research the legal nature and essence of corrupt behavior, as well as the international and national legal aspects of the fight against corruption. The article discloses the relation between the factual results of the operation of anti-corruption normative and legal acts and the goals and objectives for which they were adopted. The effectiveness of the regulatory effect and quality of anti-corruption legislation is determined by the example of the Russian Federation. The article provides an analysis of theoretical aspects of the theory and history of the formation and development of anti-corruption legislation (on the example of Russia and some other countries, as well as international legal norms) giving several practical examples from foreign legislation demonstrating the structure of the system of government bodies battling against corrupt behavior (including its latent forms). The authors suggest that there is a need for a unified conception of information and propaganda support of state anti-corruption activities. This will make it possible to inform the population that the state is actively working to prevent corruption threats and to bring perpetrators to justice, as well as contribute to citizens' trust in the state policy in this area. At the same time, it is necessary to regularly inform the citizens about the provisions of the anti-corruption legislation, explaining the importance of their observance.

• Korean Journal of Legislative Studies
• /
• v.25 no.2
• /
• pp.141-177
• /
• 2019

This paper explains cross-national variation of CPI(corruption perception index) centering on legal culture. By critically reviewing previous researches on effects of British common law system on corruption, we define legal culture as citizens' perception of their legal system. Specifically, measuring legal culture with respect to courts fairness and courts accessibility, we test two hypotheses on effects of legal culture on corruption. A cross-national comparison of 78 countries with OLS regression analyses reveals that courts fairness tends to lower the level of corruption while courts accessibility does not have a significant effect on corruption. Based on this result, we suggest policy implications for judicial reform as well as anti-corruption measure, which puts more emphasis on reforming legal practice that hinders courts fairness than increasing legal service supply. In addition, as the essence of legal culture lies in citizens' shared perception of the legal system, we argue that a broad and solid citizens' consciousness of fair and equitable legal procedures is indispensable in preventing corruption.