It has been argued that foreign direct investment can exert upward or downward pressure on the domestic interest rate depending on foreign investors’ relative weights on internal and external finance with respect to the domestic economy. Additionally, a country’s level of corruption can influence firms’ ability to obtain external finance. We find that across countries a 1 percent increase in FDI inflows (outflows) is more likely to reduce the domestic interest rate by as much as 0.7 (1) percent. This empirical association between domestic interest rates and FDI flows is non-monotonically contingent on a country’s level of corruption.

中文翻译：

---

国内利率、外国直接投资和腐败

有人认为，外国直接投资可以对国内利率施加向上或向下的压力，这取决于外国投资者对国内和国外金融相对于国内经济的相对权重。此外，一个国家的腐败程度会影响企业获得外部融资的能力。我们发现，各国 FDI 流入（流出）每增加 1%，更有可能将国内利率降低 0.7 (1)%。国内利率和 FDI 流量之间的这种实证关联非单调地取决于一个国家的腐败程度。