Does Public Governance Always Matter? How Experience of Poor Institutional Quality Influences FDI to the South

Julia Darby, Rodolphe Desbordes and Ian Wooton ()

No 1003, Working Papers from University of Strathclyde Business School, Department of Economics

Abstract: This paper investigates whether the higher prevalence of South multinational enterprises (MNEs) in risky developing countries may be explained by the experience that they have acquired of poor institutional quality at home. We confirm the intuitions provided by our analytical model by empirically showing that the positive impact of good public governance on foreign direct investment (FDI) in a given host country is moderated significantly, and even in some cases eliminated or reversed, when MNEs have had prior experience of poor institutional quality at home.

Keywords: South-South FDI; public governance; institutions (search for similar items in EconPapers)
JEL-codes: F22 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2010-02
New Economics Papers: this item is included in nep-ifn
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Citations: View citations in EconPapers (12)

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Related works:
Working Paper: Does Public Governance always Matter? How Experience of Poor Institutional Quality Influences FDI to the South (2010)
Working Paper: Does Public Governance Always Matter? How Experience of Poor Institutional Quality Influences FDI to the South (2010)
Working Paper: Does Public Governance Always Matter? How Experience of Poor Institutional Quality Influences FDI to the South (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:str:wpaper:1003

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