Relationship between institutional factors and FDI flows in developing countries: New evidence from dynamic panel estimation

Artikel

In this paper, we revisit the relation between institutional factors and foreign direct investment (FDI) inflows in developing countries by employing a dynamic panel methodology, which enables us to deal with the persistency of FDI flows and endogeneity issues. We also contribute to the literature by using various measures of institutions to identify which aspects of institutional quality affect FDI in the developing world. Our empirical findings based on 113 developing countries over the period 2002-2012 show evidence that some institutional factors matter more than others in attracting more FDI flows. We also found that the financial crisis in 2008 and 2009 had a negative impact on FDI flows.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Economies ; ISSN: 2227-7099 ; Volume: 5 ; Year: 2017 ; Issue: 2 ; Pages: 1-10 ; Basel: MDPI

Classification and Topics

• Classification: Wirtschaft ; International Investment; Long-term Capital Movements ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models ; Bureaucracy; Administrative Processes in Public Organizations; Corruption ; Other Economic Systems: Political Economy; Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
• Subject: institutions ; foreign direct investment (FDI) flows ; dynamic panel estimation ; developing countries

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kurul, Zühal ; Yalta, A. Yasemin
• Event: Veröffentlichung
• (who): MDPI
• (where): Basel
• (when): 2017

Further information

• DOI: doi:10.3390/economies5020017
• Handle: http://hdl.handle.net/10419/197020
• Last update: 10.03.2025, 11:42 AM CET