Host country's governance and the size of foreign investors

Vahe Lskavyan () and Mariana Spatareanu

Economics Letters, 2008, vol. 100, issue 2, 258-261

Abstract: We find that smaller foreign investors are more sensitive to the quality of host country's governance than larger investors. This may be the case as smaller foreign firms have less bargaining power and are more sensitive to uncertainty and risk.

Date: 2008
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