The Impact of Institutional Environment on Inflows of Foreign Direct Investment in European Transition Economies and Latin American Countries

Vliv institucionálního prostředí na příliv přímých zahraničních investic v evropských tranzitivních ekonomikách a v Latinské Americe

Michal Mádr and Luděk Kouba

Acta Oeconomica Pragensia, 2015, vol. 2015, issue 1, 45-60

Abstract: The main objective of the paper is to identify and quantify the influence of institutional environment on inflows of foreign direct investment in European post-socialist countries and countries of Latin America. The reference period is the period 1996-2012 due to data availability. The World Bank Governance Matters concept is used as the basic indicator of institutional environment. Panel data regression analysis is used for the identification and quantification purposes. According to the results, the influence of institutional environment on FDI is not entirely unequivocal in the European transition economies, but it is statistically significant in the Latin American countries. Furthermore, there are statistically significant areas - quality of democracy and government effectiveness - in the post-socialist countries, and all the institutional areas except the level of democracy in Latin America, mainly regulatory quality and rule of law.

Keywords: institutional environment; foreign direct investment; transition economies; Latin America; Governance Matters (search for similar items in EconPapers)
JEL-codes: F21 P16 P26 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://aop.vse.cz/doi/10.18267/j.aop.464.html (text/html)
http://aop.vse.cz/doi/10.18267/j.aop.464.pdf (application/pdf)
free of charge

Related works:
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: https://EconPapers.repec.org/RePEc:prg:jnlaop:v:2015:y:2015:i:1:id:464:p:45-60

Ordering information: This journal article can be ordered from
Redakce Acta Oeconomica Pragensia, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3
http://aop.vse.cz

DOI: 10.18267/j.aop.464

Access Statistics for this article

Acta Oeconomica Pragensia is currently edited by Klára Šimůnková

More articles in Acta Oeconomica Pragensia from Prague University of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Stanislav Vojir ().