International Business(IB) Research
My international business research focuses on how corruption and economic freedom affect foreign direct investment (FDI) and international trade flow. My focal area is East Asia and the BRIC countries. Most of my research applied the gravity model. Theoretically, low economic freedom and a high level of corruption will block FDI. However, my studies found interesting results. After controlling of GDP, more FDI occurred between countries with very different levels of economic freedom than countries with similar economic freedom. As it relates to corruption, the results were mixed. Generally speaking, a high level of corruption does harm bilateral trade. However, if the trade partners have a similar level of corruption, they tend to have a higher bilateral trade volume.