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Governance and foreign direct investment links: evidence from panel data estimations

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  • Azmat Gani

Abstract

This article presents panel data estimates of the relationship between indicators of governance and foreign direct investment (FDI) using a sample of countries from Asia and Latin America. While controlling for standard FDI variables, the results provide strong confirmation that the rule of law; control of corruption; regulatory quality; government effectiveness and political stability are positively correlated with FDI.

Suggested Citation

  • Azmat Gani, 2007. "Governance and foreign direct investment links: evidence from panel data estimations," Applied Economics Letters, Taylor & Francis Journals, vol. 14(10), pages 753-756.
  • Handle: RePEc:taf:apeclt:v:14:y:2007:i:10:p:753-756
    DOI: 10.1080/13504850600592598
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