Abstract
We look at the association between anti-corruption courts and foreign direct investments. We find the position of anti-corruption courts in the judicial hierarchy influences the relationship between anti-corruption courts and foreign direct investments. While First Instance Court and Hybrid Court systems are negatively associated with foreign direct investments, a Comprehensive Parallel Court system is positively associated. Additional evidence from bilateral foreign direct investments suggests that investor countries with high corruption are associated with an increase in their direct investments to countries that establish First Instance Court and Hybrid Court. However, those corrupt investor countries are associated with a decrease in direct investments if a country, instead, creates a Comprehensive Parallel Court.
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