Money Talks: Foreign Investment and Briberty in Vietnam, a Survey Experiement
The prevailing work on globalization argues that foreign investment reduces corruption, either by competing down monopoly rents or diffusing best practices of corporate governance. However, openness to foreign investment has differential effects on corruption (specifically, petty bribery) even within the same country and under the same domestic institutions over time. Specifically, foreign investment is most closely associated with corruption when firms seek to enter restricted sectors that offer higher rents.