The Role of Institutional Quality on FDI: A Comparison for Pre and Post – Global Financial Crises

Year 2024, , 699 - 717, 31.10.2024

Nur Koç , Dilek Durusu Çiftçi

https://doi.org/10.25229/beta.1491840

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.

Keywords

Foreign Direct Investments, Institutional Quality, Panel Data Analysis

Doğrudan Yabancı Yatırımlarda Kurumsal Kalitenin Rolü: Küresel Finansal Kriz Öncesi ve Sonrası İçin Bir Karşılaştırma

Abstract

Bu çalışmada, kurumsal kalite alt bileşenlerinin doğrudan yabancı yatırım (DYY) üzerindeki göreceli önemi, 1996-2021 yılları arasında en çok doğrudan yabancı yatırım çeken ülkeler için dinamik panel regresyon modeli kullanılarak araştırılmaktadır. Dünya Bankası (2023) verileri, doğrudan yabancı yatırım girişlerinin 2000'li yılların başında ciddi bir ivme kazandığını ve 2007 yılında en yüksek seviyesine ulaştığını göstermektedir. Ancak küresel finansal kriz, doğrudan yabancı yatırım girişlerinde bir dönüm noktası oluşturmuş ve sonraki yıllarda oldukça dalgalı bir seyir izlemiştir. Bu sebeple analizde küresel finansal kriz öncesi ve sonrası dönemlere odaklanılmıştır. Çalışma sonucunda, tüm kurumsal kalite göstergelerinin (hukukun üstünlüğü hariç) kriz öncesi dönemde doğrudan yabancı yatırım girişleri üzerinde olumlu etkileri olduğu ve düzenleme etkinliği, hükümet etkinliği ve yolsuzluğun kontrolünün doğrudan yabancı yatırım girişleri üzerinde nispeten daha yüksek etkiye sahip olduğu ortaya koyulmuştur. Öte yandan, doğrudan yabancı yatırım girişlerinin oldukça değişken olduğu kriz sonrası dönemde herhangi bir kurumsal kalite göstergesinin doğrudan yabancı yatırımlar üzerinde anlamlı bir etkisinin olmadığı tespit edilmiştir.

Keywords

Doğrudan Yabancı Yatırımlar, Kurumsal Kalite, Panel Veri Analizi

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