The Formal and Informal Framework of Foreign Direct Investment

Pierre-Guillaume Méon and Khalid Sekkat

No 810, Working Papers from Economic Research Forum

Abstract: This paper studies the impact of social trust and formal legal and institutional determinants of foreign direct investment inflows and investment in a panel of countries. It reports that formal determinants and trust interact, and that the two are substitutes. Namely, the marginal impact of formal measures decreases with trust and vice versa.

Pages: 18
Date: 2013-12, Revised 2013-12
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Citations: View citations in EconPapers (1)

Published by The Economic Research Forum (ERF)

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