Governance and FDI Attractiveness: Some Evidence from Developing and Developed Countries

Anis Ochi; Houria Ghadri; Yosra Saidi

Governance and FDI Attractiveness: Some Evidence from Developing and Developed Countries

Yosra Saidi §

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Anis Ochi ‡

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Houria Ghadri ‡

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§ Facult des Sciences Economiques et de Gestion de Tun...

‡ Faculté des Sciences Economiques et de Gestion de Tu...

Governance and FDI Attractiveness: Some Evidence from Developing and Developed Countries

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Abstract

In this paper, we’ll try to study the impact of governance indicators and macroeconomic variables on the attractiveness of foreign direct investment in 20 developed and developing countries over the period 1998–2011 using fixed effects panel regressions. Our results generally indicate that only two indicators of governance namely, political stability and regulatory quality have a significant impact on FDI inflows. This indicates, for our overall sample, that foreign investors are interested in political stability and regulatory quality in their choice of investment abroad. This paper also investigates the impact of macroeconomic variables on the attractiveness of FDI. Generally, in most models, either developed or developing countries, these variables provide a significant sign, which indicates the importance of these factors in the attraction of FDI. Indeed, market size, trade openness, infrastructure quality, the current account deficit have a significant effect on FDI inflows.

References

17 Cites in Article

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Yosra Saidi, Anis Ochi, Houria Ghadri. 2013. "Governance and FDI Attractiveness: Some Evidence from Developing and Developed Countries". Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 13 (GJMBR Volume 13 Issue 33 (B6)).

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GJMBR Volume 13 Issue 33 (B6)

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords

fixed effects models and panel data foreign direct investment Governance Macroeconomic variables

Classification

GJMBR-B Classification JEL Code: O29

F63

Submission ReceivedDecember 8, 2012
Peer Review Double Blind
Handling Editor
Accepted January 5, 2013
Published September 26, 2013

Version of record

v1.2

Issue date

September 26, 2013

Language

English

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Article Matrices

Total Score: 103

Country: Tunisia

Subject: Global Journal of Management and Business Research - B: Economic & Commerce

Authors: Yosra Saidi, Anis Ochi, Houria Ghadri (PhD/Dr. count: 0)

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