Crazy Rich Asians: Why are Asian Countries More Successful than African Countries at Attracting FDI

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Abstract Summary

The purpose of this research is to analyze the multifaceted factors that affect foreign direct investment (FDI) in African and Asian countries. The Asian region has experienced several decades of economic growth. During these periods of economic growth, Southeast Asia also experienced an increase in the intensity of corruption. Women’s literacy rates and FDI are also highly correlated in these countries. Literacy rates among men are relatively consistent across Asia and Africa, while the discrepancy comes when you begin to analyze women’s literacy rates. The correlation between women’s literacy rates, economic success and government corruption is surprising and certainly underexplored by the literature. I hypothesize that on an individual level, more educated women may be able to use corrupt channels to ease conduct of their business instead of being victimized by the corrupt system. The results showing greater influx of FDI into Asia than Africa may highlight why corruption can have a bigger, negative economic impact on African countries. This literature is important because empirical literature on the economies of developing countries is frequently gender-blind. This research will aid government officials in making informed decisions and help find solutions to specific economic problems facing developing countries.

Abstract ID :
2019-344
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Abstract Topics
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Spelman College
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Spelman College

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