Corporate Governance: And the Bargaining Power of Developing Countries to Attract Foreign Investment

Enrique Rueda‐Sabater

Corporate Governance: An International Review, 2000, vol. 8, issue 2, 117-124

Abstract: Following the rapid growth of foreign investment flows in the 1980s and 1990s some countries that had been dependent on official aid are now (even after the recent financial crises) obtaining most of their external financing from private sources. But low‐income countries still receive little private capital flows. Arguing that corporate governance, broadly defined to include many business practices, is an important determinant of inward foreign investment this paper explores links between corporate Governance: And the ability of developing countries to attract foreign investment. It raises policy questions for developing countries and points to the need for complementary actions by government, businesses associations and institutional investors to promote corporate governance improvements.

Date: 2000
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