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The effect of institutions on the foreign direct investment‐growth nexus

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Dados Bibliográficos

ID21543584
AutoresChengchun Li (0000-0002-6875-3418, Business School Changshu Institute of Technology Suzhou China), Sailesh Tanna (0000-0002-2243-3857, School of Economics Finance and Accounting, Faculty of Business and Law Coventry University Coventry UK, autor correspondente), Baseerit Nissah (School of Social Sciences and Global Studies The Open University Milton Keynes UK)
Ano2023
Volume46
Fascículo7
Páginas1999-2031
Data de publicação2023-07-01
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoWorld Economy (JOURNAL)
Identificadores do periódicoISSN: 0378-5920 • E-ISSN: 1467-9701
EditoraWiley (PUBLISHER • GB)
DOI10.1111/twec.13349
OpenAlexW4307563158
IdiomaEN
Citações recebidas1
Referências citadas70

This paper examines the extent to which host‐country institutions influence the relationship between inward foreign direct investment (FDI) and economic growth. We develop a theoretical model to analyse how different types of institutions condition the FDI‐growth relationship and use various institutional proxies to conduct threshold estimations on panel data for 51 developed and developing countries over the period 1991–2016. Our results consistently reveal a robust, contingent effect of political stability on the FDI‐growth nexus, suggesting that, among all the institutional factors considered, the absence of civil conflict or violence in the host economy is most critical in terms of yielding both direct and indirect growth‐enhancing benefits associated with technology transfer and spillover effects from FDI inflows. This finding is pertinent to both developed and developing countries, although the threshold level of political stability required to achieve sizeable growth benefits from FDI tends to be lower for developing countries

Developing country · Econometrics · Economic growth · Economic system · Economics · Foreign direct investment · International economics · Macroeconomics · Panel data · Political science · Political stability · Politics · Spillover effect · Economic Policies and Impacts · Global trade and economics · International Business and FDI

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Obras citantes distintas1
Citações por ano1
Intervalo de citações2025 - 2025 (1)
Velocidade de citaçãorecent
Altamente citadoNão
Tipos de citaçãoNeutras: 1
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