@article{article_1491840, title={The Role of Institutional Quality on FDI: A Comparison for Pre and Post – Global Financial Crises}, journal={Bulletin of Economic Theory and Analysis}, volume={9}, pages={699–717}, year={2024}, DOI={10.25229/beta.1491840}, author={Koç, Nur and Durusu Çiftçi, Dilek}, keywords={Foreign Direct Investments, Institutional Quality, Panel Data Analysis}, abstract={In this study, the relative importance of institutional quality indicators on foreign direct investment (FDI) is investigated using a dynamic panel regression model for the countries that attracted the most FDI between 1996-2021. The World Bank (2023) data shows that FDI inflows gained a significant momentum at the beginning of the 2000s and reached its highest level in 2007. However, the Global Financial Crises (GFC) created a turning point in FDI inflows and it followed a very volatile course in the following years. For this reason, the analysis focused on the periods pre and post the global financial crisis. As a result of the study, it is revealed that all institutional quality indicators (except the rule of law) have positive effects on FDI inflows in the pre-crisis period, and regulatory effectiveness, government effectiveness and corruption control have a relatively higher impact on FDI inflows. On the other hand, it has been determined that no institutional quality indicator has a significant effect on foreign direct investments in the post-crisis period when FDI inflows are highly volatile.}, number={3}, publisher={Mehmet SONGUR}