This study examines the impact of institutional quality on foreign direct investment (F.D.I.) by categorising the countries as developed or developing. We measured institutional quality by the sum of control of corruption and rule of law indicators. We provide evidence that institutional quality positively and significantly impacts F.D.I. in developed countries; specifically, we find that a one standard deviation change in governance significantly affects F.D.I. by a factor of 0.2225 (using common law and the lagged values of the independent variables as instruments). Ceteris paribus, the results for the developing countries demonstrate that the institutional quality impact is insignificant because of the weak structure of institutions. Result findings strongly support the significance of governance indicators in attracting F.D.I. inflows. From our results, we infer that the relevance of governance indicators tends to be a key point in attracting F.D.I. inflows.

Focusing on each country’s topmost destination/origin migration relation with other countries, this study builds top1 destination networks and top1 origin networks in order to understand their skeletal construction and community dynamics. Each top1 network covers approximately 50% of the complete migrant network stock for each decade between 1960 and 2000. We investigate the community structure by implementing the Girvan-Newman algorithm and compare the number of components and communities to illustrate their differences. We find that (i) both top1 networks (origin and destination) exhibited communities with a clear structure and a surprising evolution, although 80% edges persist between each decade; (ii) top1 destination networks focused on developed countries exhibiting shorter paths and preferring more advance countries, while top1 origin networks focused both on developed as well as more substantial developing nations that presented a longer path and more stable groups; (iii) only few countries have a decisive influence on community evolution of both top1 networks. USA took the leading position as a destination country in top1 destination networks, while China and India were the main Asian emigration countries in top1 origin networks; European countries and the Russian Federation played an important role in both.

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