Governance and FDI Attractiveness: Some Evidence from Developing and Developed Countries

Anis Ochi; Houria Ghadri; Yosra Saidi

Authors

Anis Ochi
Houria Ghadri
Yosra Saidi

Keywords:

governance, foreign direct investment, macroeconomic variables, fixed effects models and panel data

Abstract

In this paper, we'll try to study the impact of governance indicators and macroeconomic variables on the attractiveness of foreign direct investment in 20 developed and developing countries over the period 1998-2011 using fixed effects panel regressions. Our results generally indicate that only two indicators of governance namely, political stability and regulatory quality have a significant impact on FDI inflows. This indicates, for our overall sample, that foreign investors are interested in political stability and regulatory quality in their choice of investment abroad. This paper also investigates the impact of macroeconomic variables on the attractiveness of FDI. Generally, in most models, either developed or developing countries, these variables provide a significant sign, which indicates the importance of these factors in the attraction of FDI. Indeed, market size, trade openness, infrastructure quality, the current account deficit have a significant effect on FDI inflows.

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How to Cite

Governance and FDI Attractiveness: Some Evidence from Developing and Developed Countries. (2013). Global Journal of Management and Business Research, 13(33), 15-24. https://journalofbusiness.org/index.php/GJMBR/article/view/

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Author Biographies

Anis Ochi

Yosra Saidi is a researcher affiliated with the Faculté des Sciences Economiques et de Gestion de Tunis at Université Tunis El Manar in Tunisia. Her academic work focuses on economic governance and foreign direct investment (FDI), with a particular interest in the determinants of FDI attractiveness across developing and developed countries. She is the author of the paper 'Governance and FDI Attractiveness: Some Evidence from Developing and Developed Countries,' contributing to the understanding of how institutional quality influences international capital flows. Based in Tabarka, Tunisia, her research aligns with the intersection of economics, policy, and development.

Yosra Saidi

Yosra Saidi is a researcher affiliated with the Faculté des Sciences Economiques et de Gestion de Tunis at Université Tunis El Manar in Tunisia. Her academic work focuses on economic governance and foreign direct investment (FDI), with a particular interest in the determinants of FDI attractiveness across developing and developed countries. She is the author of the paper 'Governance and FDI Attractiveness: Some Evidence from Developing and Developed Countries,' contributing to the understanding of how institutional quality influences international capital flows. Based in Tabarka, Tunisia, her research aligns with the intersection of economics, policy, and development.

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