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Revisiting the relationship between governance and foreign direct investment

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Author Info
Pierre-Guillaume Méon () (Université Libre de Bruxelles, Department of Applied Economics (DULBEA))
Khalid Sekkat () (Université Libre de Bruxelles, Department of Applied Economics (DULBEA))

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Abstract

Using a sample of 96 countries over the nineties, this paper examines the extent to which different dimensions of governance affect FDI inflows. It considers six aspects of governance. The results of a least-squares estimation suggest a positive relationship between institutional quality and FDI. However, when the issue of the endogeneity of governance is tackled thanks to 2SLS regressions, the relationship appears much weaker.

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Publisher Info
Article provided by Editions du DULBEA, Université libre de Bruxelles, Department of Applied Economics (DULBEA) in its journal Brussels Economic Journal/Cahiers Economiques de Bruxelles.

Volume (Year): 50 (2007)
Issue (Month): 1 ()
Pages: 41-61
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Handle: RePEc:bxr:bxrceb:y:2007:v:50:i:1:p:41-61

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Related research
Keywords: Institutions Governance Foreign direct investment

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Find related papers by JEL classification:
C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data
F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

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    Other versions:
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  6. Pierre-Guillaume Méon & Laurent Weill, 2008. "Is Corruption an Efficient Grease ?," Working Papers of LaRGE (Laboratoire de Recherche en Gestion et Economie) 2008-06, Laboratoire de Recherche en Gestion et Economie, Université Louis Pasteur, Strasbourg (France). [Downloadable!]
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    Other versions:
  33. Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2004. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," Journal of Economic Growth, Springer, vol. 9(2), pages 131-165, 06. [Downloadable!]
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Jean-Luc De Meulemeester, 2007. "L'Economie de l'Education fait-elle des Progrès? Une Perspective d'Histoire de la Pensée Economique," Working Papers DULBEA 07-15.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
    Other versions:
  2. Henri Capron & Michele Cincera, 2007. "EU Pre-competitive and Near-the-Market S&T Collaborations," Working Papers DULBEA 07-17.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
    Other versions:
  3. Henri Capron, 2007. "Politique de cohésion et développement régional," Working Papers DULBEA 07-16.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
  4. Ariane Szafarz, 2007. "Hiring People-like-Yourself: A Representation of Discrimination on the Job Market," Working Papers DULBEA 07-21.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
    Other versions:
  5. Jérôme de Henau & Leila Maron & Danièle Meulders, 2007. "Travail et Maternité en Europe, COnditions de Travail et Politiques Publiques," Working Papers DULBEA 07-14.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
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