Foreign Direct Investment in oil-abundant countries: The role of institutions.
The present work reassesses the impact of good governance and democracy on Foreign Direct Investment (FDI) in oil-abundant countries. To this end, we estimate the effect of host countries' institutions on greenfield FDI, using a gravity equation for a dataset that covers 182 countries during 20...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Public Library of Science (PLoS)
2019-01-01
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| Series: | PLoS ONE |
| Online Access: | https://doi.org/10.1371/journal.pone.0215650 |
| _version_ | 1830408503394566144 |
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| author | Federico Carril-Caccia Juliette Milgram-Baleix Jordi Paniagua |
| author_facet | Federico Carril-Caccia Juliette Milgram-Baleix Jordi Paniagua |
| author_sort | Federico Carril-Caccia |
| collection | DOAJ |
| description | The present work reassesses the impact of good governance and democracy on Foreign Direct Investment (FDI) in oil-abundant countries. To this end, we estimate the effect of host countries' institutions on greenfield FDI, using a gravity equation for a dataset that covers 182 countries during 2003-2012. Our findings confirm that compliance to rule of law, lack of corruption, political stability and democracy could boost new FDI links through the extensive margin. Our results could not rule out the "oil curse", meaning that oil producers attract fewer new greenfield projects than similar countries without oil. Unlike other studies, we show that the impact of institutions is not necessarily undermined by the presence of natural resources. |
| first_indexed | 2024-12-20T18:53:16Z |
| format | Article |
| id | doaj.art-966c62eec1a54d2eabedafc7cd4f0c38 |
| institution | Directory Open Access Journal |
| issn | 1932-6203 |
| language | English |
| last_indexed | 2024-12-20T18:53:16Z |
| publishDate | 2019-01-01 |
| publisher | Public Library of Science (PLoS) |
| record_format | Article |
| series | PLoS ONE |
| spelling | doaj.art-966c62eec1a54d2eabedafc7cd4f0c382022-12-21T19:29:34ZengPublic Library of Science (PLoS)PLoS ONE1932-62032019-01-01144e021565010.1371/journal.pone.0215650Foreign Direct Investment in oil-abundant countries: The role of institutions.Federico Carril-CacciaJuliette Milgram-BaleixJordi PaniaguaThe present work reassesses the impact of good governance and democracy on Foreign Direct Investment (FDI) in oil-abundant countries. To this end, we estimate the effect of host countries' institutions on greenfield FDI, using a gravity equation for a dataset that covers 182 countries during 2003-2012. Our findings confirm that compliance to rule of law, lack of corruption, political stability and democracy could boost new FDI links through the extensive margin. Our results could not rule out the "oil curse", meaning that oil producers attract fewer new greenfield projects than similar countries without oil. Unlike other studies, we show that the impact of institutions is not necessarily undermined by the presence of natural resources.https://doi.org/10.1371/journal.pone.0215650 |
| spellingShingle | Federico Carril-Caccia Juliette Milgram-Baleix Jordi Paniagua Foreign Direct Investment in oil-abundant countries: The role of institutions. PLoS ONE |
| title | Foreign Direct Investment in oil-abundant countries: The role of institutions. |
| title_full | Foreign Direct Investment in oil-abundant countries: The role of institutions. |
| title_fullStr | Foreign Direct Investment in oil-abundant countries: The role of institutions. |
| title_full_unstemmed | Foreign Direct Investment in oil-abundant countries: The role of institutions. |
| title_short | Foreign Direct Investment in oil-abundant countries: The role of institutions. |
| title_sort | foreign direct investment in oil abundant countries the role of institutions |
| url | https://doi.org/10.1371/journal.pone.0215650 |
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