Relationship between Institutional Factors and FDI Flows in Developing Countries: New Evidence from Dynamic Panel Estimation
In this paper, we revisit the relation between institutional factors and foreign direct investment (FDI) inflows in developing countries by employing a dynamic panel methodology, which enables us to deal with the persistency of FDI flows and endogeneity issues. We also contribute to the literature b...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2017-05-01
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| Series: | Economies |
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| Online Access: | http://www.mdpi.com/2227-7099/5/2/17 |
| _version_ | 1817996405247049728 |
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| author | Zühal Kurul A. Yasemin Yalta |
| author_facet | Zühal Kurul A. Yasemin Yalta |
| author_sort | Zühal Kurul |
| collection | DOAJ |
| description | In this paper, we revisit the relation between institutional factors and foreign direct investment (FDI) inflows in developing countries by employing a dynamic panel methodology, which enables us to deal with the persistency of FDI flows and endogeneity issues. We also contribute to the literature by using various measures of institutions to identify which aspects of institutional quality affect FDI in the developing world. Our empirical findings based on 113 developing countries over the period 2002–2012 show evidence that some institutional factors matter more than others in attracting more FDI flows. We also found that the financial crisis in 2008 and 2009 had a negative impact on FDI flows. |
| first_indexed | 2024-04-14T02:21:50Z |
| format | Article |
| id | doaj.art-42d1b13a89a1408ab6608b71eb8cb93d |
| institution | Directory Open Access Journal |
| issn | 2227-7099 |
| language | English |
| last_indexed | 2024-04-14T02:21:50Z |
| publishDate | 2017-05-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Economies |
| spelling | doaj.art-42d1b13a89a1408ab6608b71eb8cb93d2022-12-22T02:18:00ZengMDPI AGEconomies2227-70992017-05-01521710.3390/economies5020017economies5020017Relationship between Institutional Factors and FDI Flows in Developing Countries: New Evidence from Dynamic Panel EstimationZühal Kurul0A. Yasemin Yalta1Department of Economics, Hacettepe University, Çankaya, Ankara, 06800, TurkeyDepartment of Economics, Hacettepe University, Çankaya, Ankara, 06800, TurkeyIn this paper, we revisit the relation between institutional factors and foreign direct investment (FDI) inflows in developing countries by employing a dynamic panel methodology, which enables us to deal with the persistency of FDI flows and endogeneity issues. We also contribute to the literature by using various measures of institutions to identify which aspects of institutional quality affect FDI in the developing world. Our empirical findings based on 113 developing countries over the period 2002–2012 show evidence that some institutional factors matter more than others in attracting more FDI flows. We also found that the financial crisis in 2008 and 2009 had a negative impact on FDI flows.http://www.mdpi.com/2227-7099/5/2/17institutionsforeign direct investment (FDI) flowsdynamic panel estimationdeveloping countries |
| spellingShingle | Zühal Kurul A. Yasemin Yalta Relationship between Institutional Factors and FDI Flows in Developing Countries: New Evidence from Dynamic Panel Estimation Economies institutions foreign direct investment (FDI) flows dynamic panel estimation developing countries |
| title | Relationship between Institutional Factors and FDI Flows in Developing Countries: New Evidence from Dynamic Panel Estimation |
| title_full | Relationship between Institutional Factors and FDI Flows in Developing Countries: New Evidence from Dynamic Panel Estimation |
| title_fullStr | Relationship between Institutional Factors and FDI Flows in Developing Countries: New Evidence from Dynamic Panel Estimation |
| title_full_unstemmed | Relationship between Institutional Factors and FDI Flows in Developing Countries: New Evidence from Dynamic Panel Estimation |
| title_short | Relationship between Institutional Factors and FDI Flows in Developing Countries: New Evidence from Dynamic Panel Estimation |
| title_sort | relationship between institutional factors and fdi flows in developing countries new evidence from dynamic panel estimation |
| topic | institutions foreign direct investment (FDI) flows dynamic panel estimation developing countries |
| url | http://www.mdpi.com/2227-7099/5/2/17 |
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