Arbeitspapier

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

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.

Language
Englisch

Bibliographic citation
Series: cege Discussion Papers ; No. 114

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

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

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Dreher, Axel
  • Mikosch, Heiner
  • Voigt, Stefan
  • University of Göttingen, Center for European, Governance and Economic Development Research (cege)

Time of origin

  • 2010

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