In this paper we study the effect of quality of institutions in the OECD and Asian host countries on outward foreign direct investment (FDI) stocks of source OECD countries using International Country Risk Guide governance indicators, for the period 1991 to 2001. We find that better institutions in the host countries have an overall positive and significant effect on source countries outward FD...

The existing empirical literature on foreign direct investment (FDI) entry strategies tends to allow a binary choice between wholly owned enterprises (WOEs) and equity joint ventures (EJVs) or between greenfield investment and acquisition only. The current study establishes a multinomial logit model for the choice from all four FDI entry modes in China. Hypotheses involving country-, industryan...

The aim of this study is to the long run relationship among Foreign Direct Investment, Trade (Imports & Exports) and Economic growth for Pakistan. The co-integrating VAR framework is used to find the relationship over the period of 1965 to 2005. The results show that there are two long run relationships exist between GDP, Imports and Exports and FDI. First long run relationship shows that both ...

This paper examines whether lax environmental policy and abundant natural resources both attract foreign direct investment (FDI). At first, their potential effects are discussed using arguments from the pollution haven hypothesis and the natural resource curse. Using cross-country Ordinary Least Square (OLS) regressions and robustness checks like Instrumental Variable Two-Stage Least Squares (I...

India is the largest democracy and fourth economy in terms of purchasing power parity world. with its stable expansion concert abundant high-skilled manpower provides vast occasion for investment, both domestic foreign Investment it can be made by nonresident as well resident Indian entities. Any non-resident investing an company FDI. FDI investment a concern or entity based one country into an...

This paper examines the relationship between foreign direct investment, openness and economic growth in Sudan during the period 1972-2011 using Granger causality and Johansen co-integration techniques to analyze the relationship and direction of causality between the variables. The study used autoregressive distributed lag (ARDL) approach to cointegration analysis proposed by Pesaran and Shin (...

In a recent global competitiveness report by the IMF, the four Nordic countries all ranked in top ten, attesting to the region’s growing attractiveness as a host location for MNCs. This paper investigates the driving forces determining foreign direct investment flows into Scandinavia. We use a panel data set covering FDI inflows to Denmark, Sweden, Norway and Finland for the period 1979-2000. R...

In this paper we search for pollution haven consistent evidence within China. Using a province level data set and three different measures of environmental stringency, we investigate whether inward foreign direct investment (FDI) is attracted to those regions with relatively low environmental regulations. Our results are consistent with pollution haven seeking behaviour by foreign investors. In...

Using recent data on propensity-score matched firms from the U.K manufacturing industry, the paper uncovers evidence that acquisition FDI is an important channel of direct technology transfer from foreign multinationals to domestic exporters. This is consistent with the recently developed theory by Helpman, Melitz and Yeaple (2002) which, because of sunk costs, predicts firms engaged in FDI act...

To many developing countries nowadays, Foreign direct investment (FDI) is regarded as an important factor that promotes growth. While traditional theory states that FDI helps increasing labor income by bringing capital to laborabundant countries, more recent works points to the possibility that type of capital in‡ow matters as well. Various studies of …nancial crisis highlight the stability of ...