Formal Institutions and Foreign Direct Investment

Author(s)

Belay Seyoum, Nova Southeastern UniversityFollow

Document Type

Article

Publication Title

Thunderbird International Business Review

ISSN

1520-6874

Publication Date

2009

Abstract/Excerpt

This study examines the impact of formal institutions on foreign direct investment. First, the quality (strength or weakness) of formal institutions in host countries is analyzed. Second, the absolute differences in the quality of formal institutions between the host and home countries are examined. The results show that (1) strong formal institutions in host countries positively influence FDI flows and (2) the larger the institutional distance between the home and host country, the lesser the FDI inflows.

DOI

10.1002/tie.20256

Volume

51

Issue

2

First Page

165

Last Page

183

NSUWorks Citation

Seyoum, Belay, "Formal Institutions and Foreign Direct Investment" (2009). HCBE Faculty Articles. 1004.
https://nsuworks.nova.edu/hcbe_facarticles/1004