THE ROLE OF GOVERNANCE ON INWARD FOREIGN DIRECT INVESTMENT IN DEVELOPING COUNTRIES

Adem Gök; A. Suut Doğruel

doi:10.14780/muiibd.281325

THE ROLE OF GOVERNANCE ON INWARD FOREIGN DIRECT INVESTMENT IN DEVELOPING COUNTRIES

Öz

Developing countries generally have poor governance infrastructure negatively affecting investment

climate. Since economic growth of host countries is another important factor affecting the foreign

direct investment decisions, the aim of the paper is to analyze the effect of governance infrastructure

and economic growth with other control variables on FDI inflows in developing countries and to

discuss policy implications to increase their FDI inflows. Since governance, FDI and growth are three

concepts that interact with each other according to the theoretical and empirical literature, System

GMM methodology is used to deal with endogeneity problem. It is found that improvements in

governance and higher GDP growth rate attract more FDI inflows in developing countries.

Anahtar Kelimeler

Governance,FDI,System GMM Analysis

Kaynakça

ASIEDU, E., “On the Determinants of Foreign Direct Investment to Developing Countries: Is Africa Different?”, World Development, Vol.30, No.1, 2002, pp. 107-119.
ASIEDU, E., and LIEN, D., “Democracy, Foreign Direct Investment and Natural Resources”, Journal of International Economics, Vol.84, No.1, 2011, pp. 99-111.
AYSAN, A. F., NABLI, M. K., and VAROUDAKIS, M. A. V., “Governance and Private Investment in the Middle East and North Africa”, CERDI, Etudes et Documents, E 27, 2006.
BELLOS, S., and SUBASAT, T., “Corruption and Foreign Direct Investment: A Panel Gravity Model Approach”, Bulletin of Economic Research, Vol.64, No.4, 2012, pp. 565-574.
BELLOS, S., and SUBASAT, T., “Governance and Foreign Direct Investment: A Panel Gravity Model Approach”, International Review of Applied Economics, Vol.26, No.3, 2012, pp. 303-28.
BIGLAISER, G., and DEROUEN, K., “The Expansion of Neoliberal Economic Reforms in Latin America”, International Studies Quarterly, Vol.48, No.3, 2004, pp.561-578.
BIGLAISER, G., and STAATS, J. L., 2010, “Do Political Institutions Affect Foreign Direct Investment? A Survey of US Corporations in Latin America”, Political Research Quarterly, Vol.63, No.3, 2010, pp.508-522.
BUCHANAN, B. G., LE, Q. V., and RISHI, M., 2012, “Foreign Direct Investment and Institutional Quality: Some Empirical Evidence”, International Review of Financial Analysis, Vol.21, pp.81-89.

BUSSE, M., and HEFEKER, C., “Political Risk, Institutions and Foreign Direct Investment”, European Journal of Political Economy, Vol.23, No.2, 2007, pp.397-415.
CANTAH, W. G., WIAFE, E. A., and ADAMS, A., “Foreign Direct Investment and Trade Policy Openness in Sub-Saharan Africa”, MPRA Paper, No. 58074, 2013.
CHENG, L. K. and KWAN, Y. K., “What are the Determinants of the Location of Foreign Direct Investment: The Chinese Experience”, Journal of International Economics, Vol.51, No.2, 2000, pp.379-400.
DE MELLO, L.R., and SINCLAIR, M. T., “‘Foreign Direct Investment, Joint Ventures, and Endogenous Growth”, Discussion Paper, Department of Economics, University of Kent, 1995.
EGGER, P., and WINNER, H., “Evidence on Corruption as an Incentive for Foreign Direct Investment”, European Journal of Political Economy, Vol.21, No.4, 2005, 932-952.
FLOWERS, E. B., “Oligopolistic Reaction in European and Canadian Direct Investment in the United States”, Journal of International Business Studies, Vol.7, 1976, pp.43–55.
FRH, “Civil Liberties and Political Voice Index”, Freedom House, Washington. D.C., 2012 -(accessed 2 January 2012)
GLOBERMAN, S., and SHAPIRO, D., “Global Foreign Direct Investment Flows: The Role of Governance Infrastructure”, World Development, Vol.30, No.11, 2002, pp.1899–1919.
GLOBERMAN, S., and SHAPIRO, D., “Governance Infrastructure and US Foreign Direct Investment”, Journal of International Business Studies, Vol.34, No.1, 2003, pp.19-39.
HABIB, M., and ZURAWICKI, L., “Corruption and Foreign Direct Investment”, Journal of International Business Studies, Vol.33, No.2, 2002, pp.291-307.
ICRG, International Country Risk Guide, The PRS Group, New York, 2011.
JADHAV, P., “Determinants of Foreign Direct Investment in BRICS Economies: Analysis of Economic, Institutional and Political Factor”, Procedia-Social and Behavioral Sciences, 37, 2012, pp.5-14.
JUDE, C., and POP SILAGHI, M. I., “Foreign Direct Investment, Employment Creation and Economic Growth in CEE Countries. An Open Issue”, Development, Energy, Environment, Economics, 1998, pp.352-356.
KAUFMANN, D., KRAAY, A., and ZOIDO-LOBATÓN, P., “Aggregating Governance Indicators”, World Bank Publications, Vol. 2195, 1999.
KHAN, M. H., “Governance, Economic Growth and Development since the 1960s”, DESA Working Paper, No. 54, 2007.
KINOSHITA, Y., “Firm Size and Determinants of Foreign Direct Investment”, CERGE-EI Working Paper Series, No. 135, 1998.
KNICKERBOCKER, F. T. Oligopolistic Reaction and the Multinational Enterprise, Cambridge (MA), Harvard University Press, 1973.
LA PORTA, R., LOPEZ-DE-SILANES, F., SHLEIFER, A., and VISHNY, R. W., “Legal Determinants of External Finance”, Journal of Finance, Vol.52, No.3, 1997, pp.1131-1150.
MENGISTU, A., and ADHIKARY, B. K., “Does Good Governance Matter for FDI Inflows? Evidence from Asian Economies”, Asia Pasific Business Review, Vol.17, No.3, 2011, pp. 281-299.
NARULA, R., Multinational Investment and Economic Structure: Globalization and Competitiveness, Routledge, London, 1996.
NOORBAKHSH, F., PALONI, A., and Youssef, A., “Human Capital and FDI Inflows to Developing Countries: New Empirical Evidence”, World Development, Vol.29, No.9, 2001, pp.1593-1610.
OECD, Foreign Direct Investment for Development, OECD Publications Service, 2002.
ROODMAN, D., “How to Do Xtabond2: An Introduction to Difference and System GMM in Stata”, Center for Global Development, Working Paper, No. 103, 2006.
SEKKAT, K., and VAROUDAKIS, M. A. V., Trade and Foreign Exchange Liberalization, Investment Climate, and FDI in the MENA Countries, World Bank, Middle East and North Africa, the Office of the Chief Economist, 2004.
STEIN, E., and DAUDE, C., “Institutions, Integration and the Location of Foreign Direct Investment”, OECD Global Forum on International Investment, November 2001.
SUBASAT, T., and BELLOS, S., “Corruption and Foreign Direct Investment in Latin America: A Panel Gravity Model Approach”, Journal of Management and Sustainability, Vol.3, No.4, 2013, pp.151-156.
TUMAN, J. P., and EMMERT, C. F., “The Political Economy of US Foreign Direct Investment in Latin America: A Reappraisal”, Latin American Research Review, Vol.39, No.3, 2004, pp.9-28.
UNCTAD, Unctad Statistic, United Nations, 2014. (accessed 17 March 2014)
WALSH, J. P. and YU, J., “Determinants of Foreign Direct Investment: A Sectoral and Institutional Approach”, IMF Working Paper, WP/10/187, 2010.
WDI, “World Development Indicators”, The World Bank, 2014. (accessed on 3 January 2014)
WEI, S. J., “How Taxing is Corruption on International Investors?”, The Review of Economics and Statistics, Vol.82, No.1, 2000, pp.1-11.
WGI, “The Worldwide Governance Indicators”, The World Bank, 2014. (accessed on 4 January 2014)
WHEELER, D. and MODY, A., “International Investment Location Decisions: The Case of US Firms”, Journal of International Economics, Vol.33, No.1, 1992, pp.57-76.

Ayrıntılar

Birincil Dil

Türkçe

Konular

Ekonomi

Bölüm

Araştırma Makalesi

Yazarlar

Adem Gök

A. Suut Doğruel

Yayımlanma Tarihi

24 Aralık 2016

Gönderilme Tarihi

25 Aralık 2016

Kabul Tarihi

30 Kasım 2016

Yayımlandığı Sayı

Yıl 2016 Cilt: 38 Sayı: 2

DOI

https://doi.org/10.14780/muiibd.281325

IZ

https://izlik.org/JA63TR25TN

Kaynak Göster

RIS / Bibtex

APA

Gök, A., & Doğruel, A. S. (2016). THE ROLE OF GOVERNANCE ON INWARD FOREIGN DIRECT INVESTMENT IN DEVELOPING COUNTRIES. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi, 38(2), 87-109. https://doi.org/10.14780/muiibd.281325

AMA

1.Gök A, Doğruel AS. THE ROLE OF GOVERNANCE ON INWARD FOREIGN DIRECT INVESTMENT IN DEVELOPING COUNTRIES. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi. 2016;38(2):87-109. doi:10.14780/muiibd.281325

Chicago

Gök, Adem, ve A. Suut Doğruel. 2016. “THE ROLE OF GOVERNANCE ON INWARD FOREIGN DIRECT INVESTMENT IN DEVELOPING COUNTRIES”. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi 38 (2): 87-109. https://doi.org/10.14780/muiibd.281325.

EndNote

Gök A, Doğruel AS (01 Aralık 2016) THE ROLE OF GOVERNANCE ON INWARD FOREIGN DIRECT INVESTMENT IN DEVELOPING COUNTRIES. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi 38 2 87–109.

IEEE

[1]A. Gök ve A. S. Doğruel, “THE ROLE OF GOVERNANCE ON INWARD FOREIGN DIRECT INVESTMENT IN DEVELOPING COUNTRIES”, Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi, c. 38, sy 2, ss. 87–109, Ara. 2016, doi: 10.14780/muiibd.281325.

ISNAD

Gök, Adem - Doğruel, A. Suut. “THE ROLE OF GOVERNANCE ON INWARD FOREIGN DIRECT INVESTMENT IN DEVELOPING COUNTRIES”. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi 38/2 (01 Aralık 2016): 87-109. https://doi.org/10.14780/muiibd.281325.

JAMA

1.Gök A, Doğruel AS. THE ROLE OF GOVERNANCE ON INWARD FOREIGN DIRECT INVESTMENT IN DEVELOPING COUNTRIES. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi. 2016;38:87–109.

MLA

Gök, Adem, ve A. Suut Doğruel. “THE ROLE OF GOVERNANCE ON INWARD FOREIGN DIRECT INVESTMENT IN DEVELOPING COUNTRIES”. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi, c. 38, sy 2, Aralık 2016, ss. 87-109, doi:10.14780/muiibd.281325.

Vancouver

1.Adem Gök, A. Suut Doğruel. THE ROLE OF GOVERNANCE ON INWARD FOREIGN DIRECT INVESTMENT IN DEVELOPING COUNTRIES. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi. 01 Aralık 2016;38(2):87-109. doi:10.14780/muiibd.281325