The effects of good governance on foreign direct investment inflows in Arab countries

Bannaga, Alamedin; Gangi, Yagoub Ali; Abdrazak, Rafid; Al-Fakhry, Bashar

doi:10.1080/09603107.2013.802088

Cited by 39 publications

(34 citation statements)

References 18 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…This implies that foreign investors are attracted to host countries with large markets (market-seeking FDI). This finding is consistent with Laabas and Abdmoulah (2009), Mohamed and Sidiropoulos (2010) and Bannaga et al (2013). Trade openness is positive and significant at 1% level.…”

Section: Resultssupporting

confidence: 90%

“…Moreover, entering into bilateral investment treaties with OECD countries will give strong message about the commitment of MENA countries to PRP. Bannaga et al (2013) assess the effects of World Bank governance indicators and geographic distance on FDI inflows in Arab region. They find that FDI flow is affected positively by governance indicators and negatively by geographical distance.…”

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

Determinants of FDI inflows to Arab economies

Aziz

Mishra

2015

The Journal of International Trade & Economic Development

View full text Add to dashboard Cite

The paper studies location determinants of foreign direct investment (FDI) to 16 Arab economies over the period from 1984 to 2012, by employing Arellano-Bover/Blundell-Bond linear dynamic panel data estimation. We find that market size, trade openness, preferential trade agreements and financial development have significant positive impact on FDI inflows to Arab economies. FDI in Arab economies appears to be resource seeking since the total oil supply variable is positive and significant. The paper finds that better institutions and educated labour force may play a key role in attracting FDI inflows. We suggest that Arab economies should sequence their economic policy measures with the institutional ones, beginning with a focus on privatization and trade liberalization, and subsequently shift to improvement in economic growth.

show abstract

Section: Resultssupporting

confidence: 90%

Section: Literature Reviewmentioning

confidence: 99%

Determinants of FDI inflows to Arab economies

Aziz

Mishra

2015

The Journal of International Trade & Economic Development

View full text Add to dashboard Cite

show abstract

“…More recently, the basic form of the gravity model approach has been largely developed and successfully applied to analyze the effects of institutional and policy factors on FDI inflows (e.g. Bannaga, Gangi, Abdrazak, & Al‐Fakhry, ; Bellos & Subasat, ,b; Bénassy‐Quéré, Coupet, & Mayer, ; Subasat and Bellos, ).…”

Section: Methodsmentioning

confidence: 99%

Does good governance matter for FDI? New evidence from emerging countries using a static and dynamic panel gravity model approach

Younsi

Bechtini

2019

Econ of Transit and Inst Chang

View full text Add to dashboard Cite

This paper assesses the impact of institutional factors on foreign direct investment (FDI) attractiveness using a pool of 25 emerging host countries (ECs) for the period 1996–2012. In particular, the paper aims to examine whether higher institutional quality and good governance do improve FDI attractiveness, and thereby to identify which institutional factors are the main drivers of FDI in ECs. Using a static and dynamic panel gravity model with various estimation techniques, we find that FDI is positively and significantly influenced by political stability, government effectiveness and regulatory quality. The remaining set of governance indicators is found to be statistically significant and negatively linked to FDI. Our findings also show that factors like a larger GDP per capita difference between investing partner and ECs, higher degree of trade openness and better infrastructure have positive and significant effects on FDI attractiveness. These results have important policy implications for ECs. Fostering FDI inflows into these countries requires policymakers to improve the quality of their institutions and business climate through implementing sound economic policies and regulations.

show abstract

“…Rule of law “reflects perceptions of the extent to which agents have confidence in and abide by the rules of society, particularly the quality of contract enforcement, property rights, the police, and the courts, as well as likelihood of crime and violence” (Bannaga, Gangi, Abdrazak, & Al‐Fakhry, , p. 1247). Situations where the rules and regulations are enforced unpredictably and arbitrarily are a major concern for foreign investors (Drabek & Payne, ).…”

Section: Theoretical Background: Government Reform Policies and Instimentioning

confidence: 99%

“…Henisz and Zelner () point out that rule of law tends to be relatively weak in many emerging economies. Uncertainties about law enforcement create a highly risky atmosphere for FDI (Bannaga et al, ).…”

Section: Theoretical Background: Government Reform Policies and Instimentioning

confidence: 99%

Analysis of government policies, institutions, and inward foreign direct investment: Evidence from sub‐Saharan Africa

Emudainohwo

Boateng

Brahma

et al. 2017

Thunderbird Intl Bus Rev

View full text Add to dashboard Cite

This article examines the effects of government policies and institutions on foreign direct investment (FDI) inflows in sub-Saharan African context using both quantitative and qualitative approaches. On the quantitative approach, we analyzed the effects of institutions on FDI using two statistical techniques-canonical cointegration regression (CCR) and fully modified ordinary least square (FMOLS)-over the period of 1984-2012. We find that political instability, democratic accountability, and investment risk have significant impact on inward FDI in Nigeria.Using a trend analysis, our results provide evidence to suggest that liberal government investment policies have positive influence on FDI inflows. Our qualitative analysis over the 1962-2012 period supports the results of the quantitative analysis.

show abstract

The effects of good governance on foreign direct investment inflows in Arab countries

Cited by 39 publications

References 18 publications

Determinants of FDI inflows to Arab economies

Determinants of FDI inflows to Arab economies

Does good governance matter for FDI? New evidence from emerging countries using a static and dynamic panel gravity model approach

Analysis of government policies, institutions, and inward foreign direct investment: Evidence from sub‐Saharan Africa

Contact Info

Product

Resources

About