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ABSTRAK Makalah ini menyelidiki pengaruh korupsi pada penanaman modal investasi asing (FDI inflow) pada 100 negara yang dipilih. Banyak penelitian menunjukkan korupsi sebagai salah satu variabel penting yang berdampak negatif mempengaruhi FDI inflow. Serupa seperti dua sisi koin, di satu sisi beberapa peneliti menyatakan bahwa korupsi berdampak negatif terhadap FDI inflow dengan merusak persepsi stabilitas dan kualitas potensi investasi di negara-negara tuan rumah. Sebaliknya, ada beberapa penelitian yang mengungkapkan korupsi dapat memiliki dampak positif pada investasi dengan memfasilitasi transaksi di negara-negara dengan regulasi yang berlebihan. Korupsi dipandang sebagai subjek untuk berdebat dengan beberapa pro dan kontra belakangan ini. Namun, seiring dengan peningkatan penelitian yang membuktikan korupsi memiliki dampak negatif terhadap FDI, studi ini dilengkapi dengan bukti empiris dan riset yang berkesimpulan sama. Oleh karena itu, argumentasi yang menyatakan korupsi dapat mendorong arus masuk FDI dan membantu ekonomi negara tidak sah.
ABSTRACT This paper investigates the effects of corruption on foreign direct investment inflow in 100 selected countries. Many studies pointed out corruption as one of the crucial variables that negatively affects FDI inflow. Similar like two-sided coin, on one side several researchers stated that corruption negatively affected FDI inflow by undermining the perception of stability and quality of an investment potential in host countries. In contrast, there are some studies that reveal corruption can have a positive impact on investment by facilitating transactions in countries with excessive regulations. Corruption is seen as a subject to debate with several pros and cons overtime. However, in line with the increased studies that proved corruption has a negative impacts towards FDI, this study provided with empirical evidence and resulted to the same conclusion. Hence, the argumentation that stated corruption can fostering FDI inflows and helps countries‟ economies is not valid.;This paper investigates the effects of corruption on foreign direct investment inflow in 100 selected countries. Many studies pointed out corruption as one of the crucial variables that negatively affects FDI inflow. Similar like two-sided coin, on one side several researchers stated that corruption negatively affected FDI inflow by undermining the perception of stability and quality of an investment potential in host countries. In contrast, there are some studies that reveal corruption can have a positive impact on investment by facilitating transactions in countries with excessive regulations. Corruption is seen as a subject to debate with several pros and cons overtime. However, in line with the increased studies that proved corruption has a negative impacts towards FDI, this study provided with empirical evidence and resulted to the same conclusion. Hence, the argumentation that stated corruption can fostering FDI inflows and helps countries‟ economies is not valid.;This paper investigates the effects of corruption on foreign direct investment inflow in 100 selected countries. Many studies pointed out corruption as one of the crucial variables that negatively affects FDI inflow. Similar like two-sided coin, on one side several researchers stated that corruption negatively affected FDI inflow by undermining the perception of stability and quality of an investment potential in host countries. In contrast, there are some studies that reveal corruption can have a positive impact on investment by facilitating transactions in countries with excessive regulations. Corruption is seen as a subject to debate with several pros and cons overtime. However, in line with the increased studies that proved corruption has a negative impacts towards FDI, this study provided with empirical evidence and resulted to the same conclusion. Hence, the argumentation that stated corruption can fostering FDI inflows and helps countries‟ economies is not valid., This paper investigates the effects of corruption on foreign direct investment inflow in 100 selected countries. Many studies pointed out corruption as one of the crucial variables that negatively affects FDI inflow. Similar like two-sided coin, on one side several researchers stated that corruption negatively affected FDI inflow by undermining the perception of stability and quality of an investment potential in host countries. In contrast, there are some studies that reveal corruption can have a positive impact on investment by facilitating transactions in countries with excessive regulations. Corruption is seen as a subject to debate with several pros and cons overtime. However, in line with the increased studies that proved corruption has a negative impacts towards FDI, this study provided with empirical evidence and resulted to the same conclusion. Hence, the argumentation that stated corruption can fostering FDI inflows and helps countries‟ economies is not valid.]