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Does Corruption Attract Foreign Direct Investment Inflows? Evidence from Tanzania

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dc.creator Mfalamagoha, David S. M.
dc.date 2022-03-11T06:09:18Z
dc.date 2022-03-11T06:09:18Z
dc.date 2021-09
dc.date.accessioned 2022-10-21T11:34:10Z
dc.date.available 2022-10-21T11:34:10Z
dc.identifier 2591 - 6890
dc.identifier http://41.59.91.37:8080/xmlui/handle/123456789/194
dc.identifier.uri http://hdl.handle.net/123456789/86234
dc.description Corruption remains the most critical institutional factor which deters FDI inflows in developing countries. However not much is known about the impact of corruption on FDI inflows in Tanzania since the initiation of economic reforms which was introduced in the 1990s. This study aims to investigate the impact of corruption on FDI inflows in Tanzania using time series institutional data from 1996 to 2015 obtained from the World Bank governance indicators and FDI inflow data from the Bank of Tanzania (BOT) respectively. Multiple linear regression model was used to analyze the data, unit root test was employed to determine stationarity and non-stationarity of data, while Co integration test using Augmented Dickey-Fuller test, Engle­ Granger (EG) in this case Johansen cointegration test was also employed to test whether variables were cointegrated. The study found corruption (CC) had a significant negative impact on FDI inflows in Tanzania, both in the long run and short run, while regulatory quality (RQ) and voice and accountability (VA) had a significant positive impact on FDI inflows in Tanzania over the period 1996-2015. The study recommends that measures should be adopted to reduce corruption in order to make the country's investment climate attractive to foreign investors.
dc.format application/pdf
dc.language en
dc.publisher The Institute of Finance Management
dc.subject Corruption
dc.subject FDI
dc.subject Inflow
dc.subject Tanzania
dc.subject Time series
dc.title Does Corruption Attract Foreign Direct Investment Inflows? Evidence from Tanzania
dc.type Article


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