The impact of the corruption perception index on foreing direct investment: The case of Turkey (1995-2022)

Multinational companies may decide whether or not to invest based on a country's Corruption Perception Index (CPI) score. In this line, Foreign Direct Investments (FDI) can be affected in the countries with high corruption perception Departing from this point, this study aims to investigate the effects of the Corruption Perception Index (CPI) on Foreign Direct Investments (FDI) between 1995 and 2022. In this context, the relationship between the CPI scores published annually by Transparency International and FDI is examined. The findings from the cointegration analysis indicate a long-term relationship between the CPI and FDI. Results from regression analysis show that a 1-unit increase in CPI leads to a 0.09-unit decrease in FDI in the long term.