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The Impact of Social Norms on Foreign Direct Investments

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  • Vlad Ioana Maria

    (Babes-Bolyai University, Romania)

Abstract

This study examines the impact of social norms, measured through the Cultural Tightness-Looseness (CTL) index, on foreign direct investments (FDI) across 67 countries. I aimed to highlight a new approach from the sphere of cultural influences on bilateral FDI flows and to demonstrate the direct connection between the strictness imposed by a country’s social norms and the investment decisions based on them. The results obtained were in line with the initial expectations, validating the level of constraint/permissiveness as a truly influential factor in relation to foreign direct investments.

Suggested Citation

  • Vlad Ioana Maria, 2024. "The Impact of Social Norms on Foreign Direct Investments," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 69(2), pages 13-25.
    • Handle: RePEc:vrs:subboe:v:69:y:2024:i:2:p:13-25:n:1002
    DOI: 10.2478/subboec-2024-0007
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    References listed on IDEAS

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    More about this item

    Keywords

    foreign direct investment; cultural tightness-looseness; economic growth;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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