HCBE Faculty Articles
Title
Formal Institutions and Foreign Direct Investment
Document Type
Article
Publication Date
2009
Publication Title
Thunderbird International Business Review
ISSN or ISBN
1520-6874
Volume
51
Issue/Number
2
First Page
165
Last Page
183
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
NSUWorks Citation
Seyoum, Belay, "Formal Institutions and Foreign Direct Investment" (2009). HCBE Faculty Articles. 1004.
https://nsuworks.nova.edu/hcbe_facarticles/1004
