@article{article_281325, title={THE ROLE OF GOVERNANCE ON INWARD FOREIGN DIRECT INVESTMENT IN DEVELOPING COUNTRIES}, journal={Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi}, volume={38}, pages={87–109}, year={2016}, DOI={10.14780/muiibd.281325}, author={Gök, Adem and Doğruel, A. Suut}, keywords={Governance,FDI,System GMM Analysis}, abstract={<p>Developing countries generally have poor governance infrastructure negatively affecting investment </p> <p>climate. Since economic growth of host countries is another important factor affecting the foreign </p> <p>direct investment decisions, the aim of the paper is to analyze the effect of governance infrastructure </p> <p>and economic growth with other control variables on FDI inflows in developing countries and to </p> <p>discuss policy implications to increase their FDI inflows. Since governance, FDI and growth are three </p> <p>concepts that interact with each other according to the theoretical and empirical literature, System </p> <p>GMM methodology is used to deal with endogeneity problem. It is found that improvements in </p> <p>governance and higher GDP growth rate attract more FDI inflows in developing countries. </p>}, number={2}, publisher={Marmara Üniversitesi}