The Formal and Informal Framework of Foreign Direct Investment
Pierre-Guillaume Méon and
Khalid Sekkat
No 810, Working Papers from Economic Research Forum
Abstract:
This paper studies the impact of social trust and formal legal and institutional determinants of foreign direct investment inflows and investment in a panel of countries. It reports that formal determinants and trust interact, and that the two are substitutes. Namely, the marginal impact of formal measures decreases with trust and vice versa.
Pages: 18
Date: 2013-12, Revised 2013-12
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Published by The Economic Research Forum (ERF)
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