Trust and Foreign Direct Investment: An Empirical Analysis

Bohdan Kukharskyy

No 127, Working Papers from Bavarian Graduate Program in Economics (BGPE)

Abstract: This paper studies the relationship between trust and foreign direct investment (FDI) in a crosssection of countries. Accounting for the issue endogeneity, this paper suggests that countries with a higher level of generalized trust attract more FDI than the low-trust countries.

Keywords: Trust; Foreign Direct Investment; Causality (search for similar items in EconPapers)
JEL-codes: F14 F21 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2012-11
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Persistent link: https://EconPapers.repec.org/RePEc:bav:wpaper:127_kukharskyy

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