Can Anti-Bribery Rules Hurt Foreign Investment?
Anti-bribery enforcement in a country is followed by a 40% reduction in foreign fixed capital investments made by U.S. companies in that country, say Brad Graham of Grinnell College and Caleb Stroup of Davidson College. They collected data on enforcement actions initiated by the U.S. Department of Justice and found that U.S. firms are significantly less likely to acquire foreign firms in countries that have been previously targeted by Foreign Corrupt Practices Act enforcement. The authors suggest that this is consistent with the view that anti-bribery enforcement actions raise the cost of doing business for U.S. firms, rather than providing a way for firms to avoid a bribery arms race.
- 11 years ago: Thai police to be reformed, Traffic police could face charges of extortion
- Eight Years Ago: Gen. Chavalit to lead “People’s Army”
- Foreign luxury brands plot against the junta!
- Yet still more cartoons on Prawit’s expensive watch
- New Year’s Cartoon: Something for the Poor
- New Year’s Cartoon: News of the Past Year
- Not Richard Mille
- They are going to get Prawit
- Let’s support Prayuth!
- The military party deserves a head start
- Red buffaloes got smarter