Lambsdorff (2003) looked at how corruption affects persistent capital flow. Using data
from the International Country Risk Guide (ICRG) and the data by Gastil (1986) on political
rights and civil liberties, he tested all the variables for their potential to explain the chosen
corruption index. The study broke down corruption into sub-components and determined which
of the governance indicators are crucial to attracting capital inflows. The components are
government stability, law and order, bureaucratic quality, and civil liberties. Government
stability is insignificant as a result, meaning that it is not a crucial criterion for foreign investors