12,989
Views
81
CrossRef citations to date
0
Altmetric
Articles

The impact of institutional quality on foreign direct investment inflows: evidence for developed and developing countries

, &
Pages 626-644 | Received 08 Jul 2015, Accepted 06 Feb 2017, Published online: 07 Mar 2018

References

  • Acemoglu, D., Johnson, S., & Robinson, J. A. (2001). The colonial origins of comparative development: An empirical investigation. The American Economic Review, 91(5), 1369–1401. doi:10.2139/ssrn.244582
  • Addison, T., & Heshmati, A. (2003). The new global determinants of FDI flows to developing countries: The importance of ICT and democratization. WIDER Discussion Papers//World Institute for Development Economics (UNU-WIDER).
  • Ali, F. A., Fiess, N., & MacDonald, R. (2010). Do institutions matter for foreign direct investment? Open Economies Review, 21(2), 201–219. doi:10.1007/s11079-010-9170-4
  • Anderson, J. E., & van Wincoop, E. (2003). Gravity with gravitas: A solution to the border puzzle. American Economic Review, 93(1), 170–192.10.1257/000282803321455214
  • Anderson, J. E., & van Wincoop, E. (2004). Trade costs. Journal of Economic literature, 42(3), 691–751. doi:10.1257/0022051042177649
  • Asiedu, E. (2006). Foreign direct investment in Africa: The role of natural resources, market size, government policy, institutions and political instability. The World Economy, 29(1), 63–77. doi:10.1111/j.1467-9701.2006.00758.x
  • Asiedu, E., & Villamil, A. P. (2000). Discount factors and thresholds: Foreign investment when enforcement is imperfect. Macroeconomic Dynamics, 4(01), 1–21. doi:10.1017/S1365100500014012
  • Asteriou, D., & Hall, S. G. (2011). Applied econometrics (2. uppl.). Basingstoke: Palgrave Macmillan.
  • Bae, M. (2008). Foreign direct investment inflows and ICT configurations. Pacific Focus, 17(2), 217–226.
  • Becchetti, L., & Hasan, I. (2004). The effects of (within and with EU) regional integration: Impact on real effective exchange rate volatility, institutional quality and growth for MENA countries. World Institute for Development Economics Research of the United Nations University, Research Paper (No. 2005/73).
  • Belsley, D., Kuh, E., & Welsch, R. (2005). Regression diagnostics: Identifying influential data and sources of collinearity (Vol. 571). Hoboken, NJ: John Wiley & Sons.
  • Bénassy-Quéré, A., Coupet, M., & Mayer, T. (2007). Institutional determinants of foreign direct investment. The World Economy, 30(5), 764–782. doi:10.1111/j.1467-9701.2007.01022.x
  • Bevan, A., Estrin, S., & Meyer, K. (2004). Foreign investment location and institutional development in transition economies. International Business Review, 13(1), 43–64. doi:10.1016/j.ibusrev.2003.05.005
  • Billington, N. (1999). The location of foreign direct investment: An empirical analysis. Applied Economics, 31(1), 65–76. doi:10.1080/000368499324561
  • Buchanan, B., & English, P. C. (2007). Law, finance, and emerging market returns. Emerging Markets Review, 8(3), 181–193. doi:10.1016/j.ememar.2007.05.001
  • Buchanan, B., Le, Q. V., & Rishi, M. (2012). Foreign direct investment and institutional quality: Some empirical evidence. International Review of Financial Analysis, 21, 81–89. doi:10.1016/j.irfa.2011.10.001
  • Campos, J. E., Lien, D., & Pradhan, S. (1999). The impact of corruption on investment: Predictability matters. World Development, 27(6), 1059–1067. doi:10.1016/S0305-750X(99)00040-6
  • Cuervo-Cazurra, A. (2006). Who cares about corruption? Journal of International Business Studies, 37(6), 807–822. doi:10.2307/4540385
  • Cuervo-Cazurra, A. (2008). The effectiveness of laws against bribery abroad. Journal of International Business Studies, 39(4), 634–651. doi:10.1057/palgrave.jibs.8400372
  • Daude, C., & Stein, E. (2007). The quality of institutions and foreign direct investment. Economics & Politics, 19(3), 317–344. doi:10.1111/j.1468-0343.2007.00318.x
  • David, R., & Brierley, J. E. C. (1985). Major legal systems in the world today: An introduction to the comparative study of law (3rd ed.). London: Stevens & Sons.
  • Djankov, S., & Murrell, P. (2002). Enterprise restructuring in transition: A quantitative survey. Journal of Economic Literature, 40, 739–792. doi:10.1257/jel.40.3.739
  • Dornbusch, R., Fischer, S., & Kearney, C. (1995). Macroeconomics (Vol. Australian ed.). Sydney: McGraw-Hill.
  • Drabek, Z., & Payne, W. (2002). The impact of transparency on foreign direct investment. Journal of Economic Integration, 17, 777–810.10.11130/jei.2002.17.4.777
  • Dunning, J. H. (2002). Determinants of foreign direct investment: Globalization-induced changes and the role of policies. Paper presented at the Annual World Bank Conference on Development Economics, Europe 2002–2003: Toward Pro-Poor Policies-Aid.
  • Durán, J. (1999). Los determinantes de la ied en los países de américa latina y el caribe: Su impacto sobre el comercio y la integración regional. MIMEO, ECLAC.
  • Eren, T. M., & Jimenez, A. (2015). Institutional quality similarity, corruption distance and inward FDI in Turkey. Journal for East European Management Studies, 20(1), 88.10.5771/0949-6181-2015-1
  • Gani, A. (2007). Governance and foreign direct investment links: Evidence from panel data estimations. Applied Economics Letters, 14(10), 753–756. doi:10.1080/13504850600592598
  • Garibaldi, P., Mora, N., Sahay, R., & Zettelmeyer, J. (2002). What moves capital to transition economies? (Vol. 2). Washington, DC: International Monetary Fund.
  • Gastanaga, V. M., Nugent, J. B., & Pashamova, B. (1998). Host country reforms and FDI inflows: How much difference do they make? World Development, 26(7), 1299–1314. doi:10.1016/S0305-750X(98)00049-7
  • Globerman, S., & Shapiro, D. (2002). Global foreign direct investment flows: The role of governance infrastructure. World Development, 30(11), 1899–1919. doi:10.1016/S0305-750X(02)00110-9
  • Globerman, S., & Shapiro, D. (2003). Governance infrastructure and US foreign direct investment. Journal of International Business Studies, 34(1), 19–39. doi:10.1057/palgrave.jibs.8400001
  • Globerman, S., Shapiro, D., & Tang, J. J. (2004). Governance and foreign direct investment in emerging and transition European countries. International Finance Review, 6(6), 431–459.
  • Hall, R. E., & Jones, C. I. (1999). Why do some countries produce so much more output per worker than others? The Quarterly Journal of Economics, 114(1), 83–116. doi:10.1162/003355399555954
  • Harms, P., & Ursprung, H. W. (2002). Do civil and political repression really boost foreign direct investments? Economic Inquiry, 40(4), 651–663. doi:10.1093/ei/40.4.651
  • Henisz, W. (1998). The institutional environment for international investment: Safeguarding against state sector opportunism and opportunistic use of the state. Berkeley, CA: University of California.
  • Henisz, W. (2000). The institutional environment for multinational investment. Journal of Law, Economics, and Organization, 16(2), 334–364. doi:10.1093/jleo/16.2.334
  • Henisz, W., & Williamson, O. (1999). Comparative economic organization – within and between countries. Business and Politics, 1(3), 261–276. doi:10.1515/bap.1999.1.3.261
  • Jensen, N. M. (2003). Democratic governance and multinational corporations: Political regimes and inflows of foreign direct investment. International Organization, 57(3), 587–616. doi:10.1017/S0020818303573040
  • Jiménez, A. (2010). Does political risk affect the scope of the expansion abroad? Evidence from Spanish MNEs. International Business Review, 19(6), 619–633. doi:10.1016/j.ibusrev.2010.03.004
  • Jiménez, A. (2011). Political risk as a determinant of Southern European FDI in neighboring developing countries. Emerging Markets Finance and Trade, 47(4), 59–74. doi:10.2753/REE1540-496X470404
  • Johnson, A., & Dahlström, T. (2004). Bureaucratic corruption, MNEs and FDI. Sweden: MIMEO, Jönköping International Business School.
  • Ju, J., & Wei, S.-J. (2007). Domestic institutions and the bypass effect of financial globalization. Cambridge: National Bureau of Economic Research.10.3386/w13148
  • Jude, C., & Levieuge, G. (2013). Growth effect of FDI in developing economies: The role of institutional quality (MPRA Paper, No. 49321).
  • Kapuria-Foreman, V. (2007). Economic freedom and foreign direct investment in developing countries. Journal of Developing Areas, 41(1), 143–154. doi:10.1353/jda.2008.0024
  • Kaufmann, D., Kraay, A., & Mastruzzi, M. (2007). Governance matters VI: Governance indicators for 1996–2006 ( World Bank Policy Research Working Paper No. 4280). doi: 10.1596/1813-9450-4370, 10.1596/1813-9450-4149
  • Khadaroo, A. J., & Seetanah, B. (2010). Transport infrastructure and foreign direct investment. Journal of International Development, 22(1), 103–123. doi:10.1002/jid.1506
  • La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. (1997). Legal determinants of external finance. Journal of Finance, 52(3), 1131–1150, doi:10.1111/j.1540-6261.1997.tb02727.x
  • La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. (1998). Law and finance. Journal of Political Economy, 106(6), 1113–1155. doi:10.1086/250042
  • La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. (1999). The quality of government. Journal of Law, Economics, and Organization, 15(1), 222–279. doi:10.1093/jleo/15.1.222
  • La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. (2000). Investor protection and corporate governance. Journal of Financial Economics, 58(1), 3–27. doi:10.1016/S0304-405X(00)00065-9
  • Lankes, H. P., & Venables, A. J. (1996). Foreign direct investment in economic transition: The changing pattern of investments. Economics of Transition, 4(2), 331–347. doi:10.1111/j.1468-0351.1996.tb00176.x
  • Loree, D. W., & Guisinger, S. E. (1995). Policy and non-policy determinants of US equity foreign direct investment. Journal of International Business Studies, 26(2), 281–299. doi:10.1057/palgrave.jibs.8490174
  • Mauro, P. (1995). Corruption and growth. The Quarterly Journal of Economics, 110(3), 681–712. doi:10.2307/2946696
  • McCallum, J. (1995). National borders matter: Canada-US regional trade patterns. The American Economic Review, 85(3), 615–623.
  • McTaggart, D., Findlay, C., & Parkin, M. (1996). Economics. Sydney: Addison - Wesley.
  • Moosa, I. A., & Cardak, B. A. (2006). The determinants of foreign direct investment: An extreme bounds analysis. Journal of Multinational Financial Management, 16(2), 199–211. doi:10.1016/j.mulfin.2005.07.002
  • Noorbakhsh, F., Paloni, A., & Youssef, A. (2001). Human capital and FDI inflows to developing countries: New empirical evidence. World Development, 29(9), 1593–1610. doi:10.1016/S0305-750X(01)00054-7
  • North, D. C. (1981). Structure and change in economic history. New York, NY: Norton.
  • North, D. C. (1990). Institutions, institutional change and economic performance. Cambridge: Cambridge University Press.10.1017/CBO9780511808678
  • Nunes Amaral, L. A., & Guimera, R. (2006). Complex networks: Lies, damned lies and statistics. Nature Physics, 2(2), 75–76. doi:10.1038/nphys228
  • Oladipo, O. S. (2010). Foreign direct investment (FDI): Determinants and growth effects in a small open economy. The International Journal of Business and Finance Research, 4(4), 75–88.
  • Quazi, R. M. (2007). Investment climate and foreign direct investment: A study of selected countries in Latin America. Global Journal of Business Research, 1(1), 1–13.
  • Resmini, L. (2000). The determinants of foreign direct investment in the CEECs: New evidence from sectoral patterns. Economics of Transition, 8(3), 665–689. doi:10.1111/1468-0351.00060
  • Richards, D. C., & Nwankwo, S. (2005). Reforming the legal environment of business in Sub‐Saharan Africa: Moderating effects on foreign direct investment. Managerial Law, 47(5), 154–163. doi:10.1108/03090550510771179
  • Shleifer, A., Vishny, R. W., La Porta, R., & Lopez-de-Silanes, F. (2000). Investor protection and corporate governance. Journal of Financial Economics, 58(1–2), 3–27. doi:10.1016/S0304-405X(00)00065-9
  • Singh, H., & Jun, K. W. (1995). Some new evidence on determinants of foreign direct investment in developing countries. World Bank Policy Research Working Paper No. 1531.
  • Smith, S. (1997). Restrictive policy toward multinationals: Argentina and Korea. Case Studies in Economic Development (2nd ed.), 178–189.
  • Staats, J. L., & Biglaiser, G. (2012). Foreign direct investment in Latin America: The importance of judicial strength and rule of law1. International Studies Quarterly, 56(1), 193–202. doi:10.1111/j.1468-2478.2011.00690.x
  • Staiger, D. O., & Stock, J. H. (1994). Instrumental variables regression with weak instruments. Cambridge, MA: National Bureau of Economic Research.10.3386/t0151
  • Stasavage, D. (2002). Private investment and political institutions. Economics & Politics, 14(1), 41–63. doi:10.1111/1468-0343.00099
  • Stock, J. H., & Yogo, M. (2005). Testing for weak instruments in linear IV regression. Identification and Inference for Econometric Models: Essays in honor of Thomas Rothenberg.
  • The World Bank Group. (2002). Global development finance 2002. Washington, DC: © World Bank.
  • The World Bank Group. (2013). World Development Indicators 2013. © World Bank. License: CC BY 3.0 IGO. Retrieved from https://openknowledge.worldbank.org/handle/10986/13191
  • UN. (2013). Trade and Development Report, 2013: Adjusting to the changing dynamics of the world economy. Geneva and New York.
  • UN. (2014). World economic situation and prospects, 2014 (Report No. ISBN: 978-92-1-109168-7). New York.
  • Ward, D. (2007). Data and metadata reporting and presentation handbook. OECD Publishing.
  • Wei, S.-J. (1997). Why is corruption so much more taxing than tax? Arbitrariness kills. No. w6255. National Bureau of Economic Research. doi:10.3386/w6255
  • Wei, S.-J. (2000). How taxing is corruption on international investors? Review of Economics and Statistics, 82(1), 1–11. doi:10.1162/003465300558533
  • Wooldridge, J. (2000). Introductory economics: A modern approach. South-Western College Publishing, U.S.