Institutional Determinants of Foreign Direct Investment

Agnès Bénassy-Quéré (), Maylis Coupet and Thierry Mayer ()

Working Papers from CEPII research center

Abstract: In this paper, we contribute to the literature on the determinants of FDI in developing countries and re-evaluate the role of the quality of institutions on FDI. We use a newly available database, with unprecedented detail on institutions of a set of 52 countries, and compare the results with matched variables from more familiar datasets. The paper controls for the correlation between institutions and GDP per capita of the host country, and also accounts for potential endogeneity of institutions. Finally, we evaluate whether proximity of institutions between the host and the origin country raises bilateral FDI.

Keywords: FDI; gravity model; institutions; developing countries; relocation (search for similar items in EconPapers)
JEL-codes: F23 R3 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-geo, nep-int and nep-sea
Date: 2005-04
View citations in EconPapers

Downloads: (external link)
http://www.cepii.fr/anglaisgraph/workpap/summaries/2005/wp05-05.htm (application/pdf)

Related works:
Journal Article: Institutional Determinants of Foreign Direct Investment (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:cii:cepidt:2005-05

Access Statistics for this paper

More papers in Working Papers from CEPII research center
Contact information at EDIRC.
Series data maintained by ().