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Impact of Governance on FDI: Evidence from Dynamic Panel Regression Models
Applied Economics Quarterly, Vol. 66 (2020), Iss. 2 : pp. 131–144
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Fabian Reck, Zeppelin University of Friedrichshafen, Germany.
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Abstract
This paper analyzes the effect of world governance indicators on inward foreign direct investment. The sample covers 38 developed and 82 developing countries between 2002 and 2018. The results of the system GMM regressions suggest that governance indicators are important determinants of inward FDI for developed countries. Moreover, it is shown that it is important to control for dynamic effects. In comparison, for developing countries, other country characteristics – the mean tariff rate – are more important than the institutional setting.
Table of Contents
| Section Title | Page | Action | Price |
|---|---|---|---|
| Fabian Reck: Impact of Governance on FDI: Evidence from Dynamic Panel Regression Models | 1 | ||
| Abstract | 1 | ||
| 1. Introduction | 1 | ||
| 2. Literature Review | 2 | ||
| 3. Empirical Analysis | 4 | ||
| 3.1 Data Description | 4 | ||
| 3.2 Empirical Strategy | 6 | ||
| 3.3 Results | 6 | ||
| 4. Conclusions and Discussion | 9 | ||
| References | 9 | ||
| Appendix | 1 |