IDEAS home Printed from https://ideas.repec.org/a/zbw/ifweej/201611.html
   My bibliography  Save this article

Institutions and Investment in the South and East Asia and Pacific Region: Evidence from Meta-Analysis

Author

Listed:
  • Yerrabati, Sridevi
  • Hawkes, Denise Donna

Abstract

The ability of any country to attract inward FDI is considered to depend on the quality of the economic governance found within that state. This study seeks to explore the value of quality economic governance in attracting FDI in South and East Asia by meta-synthesising 771 estimates from 48 empirical studies published between 1980 and 2012. The authors find evidence that countries with good quality regulation and low levels of corruption are able to attract more FDI. They also find that countries with stronger legal systems are rewarded with higher levels of inward FDI. The results of the meta-regression suggest that investing in quality economic governance is rewarded in the global economy through high levels of inward FDI.

Suggested Citation

  • Yerrabati, Sridevi & Hawkes, Denise Donna, 2016. "Institutions and Investment in the South and East Asia and Pacific Region: Evidence from Meta-Analysis," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 10, pages 1-48.
  • Handle: RePEc:zbw:ifweej:201611
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.5018/economics-ejournal.ja.2016-11
    Download Restriction: no

    File URL: https://www.econstor.eu/bitstream/10419/141285/1/859811298.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Philipp Harms & Heinrich W. Ursprung, 2002. "Do Civil and Political Repression Really Boost Foreign Direct Investments?," Economic Inquiry, Western Economic Association International, vol. 40(4), pages 651-663, October.
    2. repec:spo:wpecon:info:hdl:2441/10184 is not listed on IDEAS
    3. Céline Azémar & Rodolphe Desbordes, 2010. "Short-run Strategies for Attracting Foreign Direct Investment," The World Economy, Wiley Blackwell, vol. 33(7), pages 928-957, July.
    4. Thierry Mayer, 2006. "Policy Coherence for Development: A Background Paper on Foreign Direct Investment," OECD Development Centre Working Papers 253, OECD Publishing.
    5. Selen Guerin & Stefano Manzocchi, 2009. "Political regime and FDI from advanced to emerging countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 145(1), pages 75-91, April.
    6. Elif C Arbatli, 2011. "Economic Policies and FDI Inflows to Emerging Market Economies," IMF Working Papers 11/192, International Monetary Fund.
    7. Jung Hur & Rasyad A. Parinduri & Yohanes E. Riyanto, 2011. "Cross‐Border M&A Inflows And Quality Of Country Governance: Developing Versus Developed Countries," Pacific Economic Review, Wiley Blackwell, vol. 16(5), pages 638-655, December.
    8. Globerman, Steven & Shapiro, Daniel, 2002. "Global Foreign Direct Investment Flows: The Role of Governance Infrastructure," World Development, Elsevier, vol. 30(11), pages 1899-1919, November.
    9. Driffield, Nigel & Jones, Chris & Crotty, Jo, 2013. "International business research and risky investments, an analysis of FDI in conflict zones," International Business Review, Elsevier, vol. 22(1), pages 140-155.
    10. Straub, Stephane, 2008. "Opportunism, corruption and the multinational firm's mode of entry," Journal of International Economics, Elsevier, vol. 74(2), pages 245-263, March.
    11. Nicola Spatafora & Oana Luca, 2012. "Capital Inflows, Financial Development, and Domestic Investment; Determinants and Inter-Relationships," IMF Working Papers 12/120, International Monetary Fund.
    12. Aymo Brunetti & Beatrice Weder, 1998. "Investment and institutional uncertainty: A comparative study of different uncertainty measures," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 134(3), pages 513-533, September.
    13. Peter Nunnenkamp & Julius Spatz, 2004. "Intellectual property rights and foreign direct investment: A disaggregated analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 140(3), pages 393-414, September.
    14. Wang, Xiaozu & Xu, Lixin Colin & Zhu, Tian, 2011. "Foreign direct investment under weak rule of law : theory and evidence from China," Policy Research Working Paper Series 5790, The World Bank.
    15. Gordon, Lawrence A. & Loeb, Stephen E., 1982. "Accounting and public policy," Journal of Accounting and Public Policy, Elsevier, vol. 1(1), pages 1-3.
    16. Singh, Harinder & Kwang W. Jun, 1995. "Some new evidence on determinants of foreign direct investment in developing countries," Policy Research Working Paper Series 1531, The World Bank.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    FDI; governance; meta-regression analysis; systematic literature review; South and East Asia and Pacific countries;

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • F3 - International Economics - - International Finance
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:ifweej:201611. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics). General contact details of provider: http://edirc.repec.org/data/iwkiede.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.