Does Corruption Hinder Investment? Evidence from Palestinian Territory
Fadi rabia
Criminal Law Department - School of Law - AlQuds Univeristy
Abstract
" Does Corruption Hinder Investment? Evidence from the Palestinian Territory" This paper is dedicated to look in-depth at the devastating impacts of corruption on the capital investment in the Arab regime, and more particularly in the Palestinian territory. It addresses the problem of unrealistic and ineffective laws and regulations on the fight against corruption. The study argues that inappropriate legislations lead corruption to feed on itself, create difficulties in its detection, and pave the way for spreading out of corruption. In addition, when foreign investment is instrumented with unstable political environment, the negative impacts on economic growth become significantly larger. There is strong evidence to demonstrate a negative relationship between corruption and nation- building progress. As a result, corruption and the struggle for independence could sound like opposites. The high degree of economic dependence must be seen as a natural result of corruption. This study suggests the creation of the right climate for investment. Great efforts must be made to face corruption at the gate. This would include detecting potential corruption risk in the government, industrial sectors, and foreign direct investment. The investment law needs to be realistic rather than idealistic, as well as, must be recognised by a democratic legislative authority. Laws can only stand when they come with effective accountably system, and being implemented by the honest people. Based on new unpublished sources, governmental documents, and other reports published by civil society groups, this paper provides unique insights into the context in which corruption hurts foreign and local investment and the creation of state independence. This should be of great interest to decision makers, researchers, and international donors.
Keywords
"Corruption", Investment Laws", "Creation of the right climate for investment and economic growth".
