The Impact of Corruption on Foreign Direct Investment: A Comparative Applied Study on a Selected Sample of Arab Countries

Authors

  • Omar Alnajjar Department of Business Economics, Faculty of Business, University of Jordan, Jordan
  • Nahil Saqfalhait Department of Business Economics, Faculty of Business, University of Jordan, Jordan
  • Omar AlZoubi Department of Business Economics, Faculty of Business, University of Jordan, Jordan

DOI:

https://doi.org/10.35682/mjhss.v41i1.1705

Keywords:

Corruption Perceptions Index, Foreign Direct Investment, Arab countries

Abstract

This study aims to analyze the impact of corruption on foreign direct investment inflows in a sample of ten Arab countries over the period (2013–2021), considering differences across income levels. Panel data techniques were employed, and three econometric models were estimated: the first for all countries, the second for high-income countries, and the third for middle-income countries. The results revealed a statistically significant negative relationship between corruption and indirect foreign investment across all models, supporting the "Sand-the-Wheel" hypothesis. The findings also showed that the impact of corruption was greater in high-income countries than in middle-income countries. The study highlights the importance of enhancing transparency and improving the investment climate in Arab countries.

Downloads

Published

2026-03-31

How to Cite

Alnajjar ع. ., Saqfalhait ن., & AlZoubi ع. . (2026). The Impact of Corruption on Foreign Direct Investment: A Comparative Applied Study on a Selected Sample of Arab Countries. Mutah Journal of Humanities and Social Sciences (MJHSS), 41(1). https://doi.org/10.35682/mjhss.v41i1.1705

Issue

Vol. 41 No. 1 (2026): Draft Version

Section

Articles