Membership has its privileges: The effect of membership in international organizations on FDI

Arbeitspapier

We argue that membership in International Organizations (IOs) is an important determinant of FDI inflows. To the extent that membership restricts a country from pursuing policies that are harmful to investors, it can signal low political risk. Using data over the 1971-2005 period, we find that membership in IOs does indeed increase inflows of FDI. Controlling for the endogeneity of membership, we find this effect to be substantively important and robust to the method of estimation.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: cege Discussion Papers ; No. 114

Classification and Topics

• Classification: Wirtschaft ; International Economic Order and Integration ; International Investment; Long-term Capital Movements ; Structure, Scope, and Performance of Government ; International Law ; Socialist Systems and Transitional Economies: Political Economy; Property Rights
• Subject: Membership in International Organizations ; FDI ; Investment Climate ; Political Risk ; Signaling ; Separating Equilibrium ; Internationale Organisation ; Mitgliedschaft ; Standortfaktor ; Ökonomische Sicherheit ; Signalling ; Schätzung ; Welt

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Dreher, Axel ; Mikosch, Heiner ; Voigt, Stefan
• Event: Veröffentlichung
• (who): University of Göttingen, Center for European, Governance and Economic Development Research (cege)
• (where): Göttingen
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/70226
• Last update: 10.03.2025, 11:44 AM CET