Does Public Governance Always Matter? How Experience of Poor Institutional Quality Influences FDI to the South*

Darby, Julia and Desbordes, Rodolphe and Wooton, Ian (2010) Does Public Governance Always Matter? How Experience of Poor Institutional Quality Influences FDI to the South*. Discussion paper. University of Strathclyde, Glasgow.

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Abstract

This paper investigates whether the higher prevalence of South multinational enterprises (MNEs) in risky developing countries may be explained by the experience that they have acquired of poor institutional quality at home. We confirm the intuition provided by our analytical model by empirically showing that the positive impact of good public governance on foreign direct investment (FDI) in a given host country is moderated significantly, and even in some cases eliminated, when MNEs have been faced with poor institutional quality at home.

  • Item type:Monograph(Discussion paper)
    ID code:67847
    Dates:
    Date
    Event
    December 2010
    Published
    Notes:Published as a paper within the Discussion Papers in Economics, No. 10-03 (2010). Versions of this paper have been presented at the CESifo Area Conference on the Global Economy, 2010, the Econometric Society World Congress 2010 in Shanghai and at seminars at the University of Sheffield and the University of York.
    Subjects:Social Sciences > Communities. Classes. Races > Regional economics. Space in economics
    Social Sciences > Finance
    Department:Strathclyde Business School > Economics
    Depositing user: Pure Administrator
    Date deposited:14 May 2019 15:05
    Last modified:11 Apr 2024 02:54
    URI:https://strathprints.strath.ac.uk/id/eprint/67847
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