Membership has its Privileges - The Effect of Membership in International Organizations on FDI

Axel Dreher, Heiner Mikosch and Stefan Voigt

No 3231, CESifo Working Paper Series from CESifo

Abstract: We argue that membership in International Organizations (IOs) is an important determinant of FDI inflows. To the extent that membership restricts a country from pursuing policies that are harmful to investors, it can signal low political risk. Using data over the 1971-2005 period, we find that membership in IOs does indeed increase inflows of FDI. Controlling for the endogeneity of membership, we find this effect to be substantively important and robust to the method of estimation.

Keywords: membership in international organizations; FDI; investment climate; political risk; signaling; separating equilibrium (search for similar items in EconPapers)
JEL-codes: F02 F21 H11 K33 P26 (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
https://www.cesifo.org/DocDL/cesifo1_wp3231.pdf (application/pdf)

Related works:
Journal Article: Membership has its Privileges – The Effect of Membership in International Organizations on FDI (2015)
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:ces:ceswps:_3231

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().