Governance and foreign direct investment: A panel gravity model approach

Sotirios Bellos, Turan Subasat

Research output: Contribution to journalArticle

21 Citations (Scopus)

Abstract

This paper investigates the link between governance and foreign direct investment in the case of 14 transition countries by using a panel gravity model approach in two alternative ways. First, the level of governance in the target country is studied. Second, the absolute difference in the governance level between the source and target country is investigated. In both cases the results suggest that the lack of good governance does not deter, in fact it encourages, foreign direct investment.
Original languageEnglish
Pages (from-to)303-328
Number of pages26
JournalInternational Review of Applied Economics
Volume26
Issue number3
DOIs
Publication statusPublished - 2012

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