The Influence of Foreign Direct Investment on Productivity: An Institutional Perspective

Canh Nguyen, Nguyen Ai Nhi, Christophe Schinckus and Thanh Su

Review of Development Finance Journal, 2021, vol. 11, issue 1, 35-45

Abstract: This study examines the roles of institutional quality on the relationship between FDIs and productivity. Generally speaking, our estimates confirm the existing empirical studies on this issue. Our contribution refers to the analysis of the combined effect of FDIs (in different forms) with the institutional quality indicators. Notably, we observe that the flows of inward FDIs have a positive effect on the TFP growth if the host countries have good institutional quality but the same inward FDIs might have a negative impact if the host countries’ institutions are well developed.

Keywords: Institutions; FDI; Productivity; Spillover effects (search for similar items in EconPapers)
JEL-codes: E02 F21 O33 O47 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:afj:journ3:v:11:y:2021:i:1:p:35-45

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