For two decades, the relationship between institutions and foreign direct investment (FDI) is receiving a growing attention as a result of increasing economic globalization and international trade promoting democracy all over the world. In this paper, we investigate the impact of institutional variables, social, economic and political, on foreign direct investment inflows into 54 upper-middle income developing countries applying panel data regressions for the period 1995-2011. The findings suggest that the institutional variables have significant effect on FDI inflows but their impact is weaker than macoreconomic variables. Especially, the market size indicators, population growth rate, global competitiveness and international country risk play a major role in attracting FDI.
For two decades, the relationship between institutions and foreign direct investment (FDI) is receiving a growing attention as a result of increasing economic globalization and international trade promoting democracy all over the world. In this paper, we investigate the impact of institutional variables, social, economic and political, on foreign direct investment inflows into 54 upper-middle income developing countries applying panel data regressions for the period 1995-2011. The findings suggest that the institutional variables have a significant effect on FDI inflows but their impact is weaker than macoreconomic variables. Especially, the market you indicators, population growth rate, global competitiveness and international country risk play a major role in attracting FDI.
Benzer Makaleler | Yazar | # |
---|
Makale | Yazar | # |
---|