The effect of institutional quality on foreign direct investment
This study analyzes the impact of institutional quality on foreign direct investment (FDI). We apply panel regressions on a sample of 13 Organization of Islamic Cooperation (OIC) countries over 2002 – 2019. The empirical results show that institutional quality plays a vital role in determining the f...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2021
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| Online Access: | http://journalarticle.ukm.my/18799/1/jeko_553-5.pdf |
| _version_ | 1796932922331103232 |
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| author | Al Mustofa, Muhammad Ubaidillah Sukmana, Raditya |
| author_facet | Al Mustofa, Muhammad Ubaidillah Sukmana, Raditya |
| author_sort | Al Mustofa, Muhammad Ubaidillah |
| collection | UKM |
| description | This study analyzes the impact of institutional quality on foreign direct investment (FDI). We apply panel regressions on a sample of 13 Organization of Islamic Cooperation (OIC) countries over 2002 – 2019. The empirical results show that institutional quality plays a vital role in determining the flow of foreign investments. Specifically, better regulatory quality tends to increase the inflow. The findings further show that countries with higher Gross Domestic Products (GDP) have greater capacity to attract larger investment flows. Additionally, a lower tax rate is expected to encourage the inflow of foreign investments. Finally, there is evidence that corruption encourages greater inflow of FDI. |
| first_indexed | 2024-03-06T04:39:36Z |
| format | Article |
| id | ukm.eprints-18799 |
| institution | Universiti Kebangsaan Malaysia |
| language | English |
| last_indexed | 2024-03-06T04:39:36Z |
| publishDate | 2021 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| record_format | dspace |
| spelling | ukm.eprints-187992022-06-23T08:42:23Z http://journalarticle.ukm.my/18799/ The effect of institutional quality on foreign direct investment Al Mustofa, Muhammad Ubaidillah Sukmana, Raditya This study analyzes the impact of institutional quality on foreign direct investment (FDI). We apply panel regressions on a sample of 13 Organization of Islamic Cooperation (OIC) countries over 2002 – 2019. The empirical results show that institutional quality plays a vital role in determining the flow of foreign investments. Specifically, better regulatory quality tends to increase the inflow. The findings further show that countries with higher Gross Domestic Products (GDP) have greater capacity to attract larger investment flows. Additionally, a lower tax rate is expected to encourage the inflow of foreign investments. Finally, there is evidence that corruption encourages greater inflow of FDI. Penerbit Universiti Kebangsaan Malaysia 2021 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/18799/1/jeko_553-5.pdf Al Mustofa, Muhammad Ubaidillah and Sukmana, Raditya (2021) The effect of institutional quality on foreign direct investment. Jurnal Ekonomi Malaysia, 55 (3). pp. 77-87. ISSN 0127-1962 https://www.ukm.my/jem/issue/v55i3/ |
| spellingShingle | Al Mustofa, Muhammad Ubaidillah Sukmana, Raditya The effect of institutional quality on foreign direct investment |
| title | The effect of institutional quality on foreign direct investment |
| title_full | The effect of institutional quality on foreign direct investment |
| title_fullStr | The effect of institutional quality on foreign direct investment |
| title_full_unstemmed | The effect of institutional quality on foreign direct investment |
| title_short | The effect of institutional quality on foreign direct investment |
| title_sort | effect of institutional quality on foreign direct investment |
| url | http://journalarticle.ukm.my/18799/1/jeko_553-5.pdf |
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