Direct investment and indirect (portfolio) investment require different governance mechanisms for investor protection. The literature on the effect of the governance environment (such as the legal system) on investment, which had been relatively underdeveloped, has begun to draw more attention...

The last quarter of the twentieth century was characterized by economic reforms in many formerly state-dominated economies. Among them, the reform attempts by China and India have attracted increasing attention in the popular media and academic research. This paper contribute to this research by...

We examine the effect of a country's governance environment on its propensity to trade. Using an updated framework of governance environment, we classify countries based on the dominant mode of governance into three types: (1) rule-based (strong public rule of law), (2) relation-based (weak rule...