Revisiting the relationship between governance and foreign direct investment

Using a sample of 96 countries over the nineties, this paper examines the extent to which different dimensions of governance affect FDI inflows. It considers six aspects of governance. The results of a least-squares estimation suggest a positive relationship between institutional quality and FDI. However, when the issue of the endogeneity of governance is tackled thanks to 2SLS regressions, the relationship appears much weaker.

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Year of publication:	2007
Authors:	Méon, Pierre-Guillaume ; Sekkat, Khalid
Published in:	Brussels Economic Review. - Département d'Économie Appliquée (DULBEA). - Vol. 50.2007, 1, p. 41-61
Publisher:	Département d'Économie Appliquée (DULBEA)
Subject:	Institutions \| governance \| foreign direct investment

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Extent:	application/pdf
Type of publication:	Article
Classification:	C33 - Models with Panel Data ; F21 - International Investment; Long-Term Capital Movements ; F41 - Open Economy Macroeconomics ; O17 - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
Source:	RePEc - Research Papers in Economics

Persistent link: https://ebvufind01.dmz1.zbw.eu/10005697988