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Revisiting the relationship between governance and foreign direct investment

Pierre-Guillaume Méon () and Khalid Sekkat

No 07-13.RS, DULBEA Working Papers from ULB -- Universite Libre de Bruxelles

Abstract: Using a sample of 96 countries over the nineties, this paper examines the extent to which different dimensions of governance affect FDI inflows. It considers six aspects of governance. The results of a least-squares estimation suggest a positive relationship between institutional quality and FDI. However, when the issue of the endogeneity of governance is tackled thanks to 2SLS regressions, the relationship appears much weaker.

Keywords: Institutions; governance; foreign direct investment. (search for similar items in EconPapers)
JEL-codes: C33 F21 F41 O17 (search for similar items in EconPapers)
Pages: 27 p.
Date: 2007-10
New Economics Papers: this item is included in nep-dev
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Published by: DULBEA - Université libre de Bruxelles, Bruxelles

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