Munich Personal RePEc Archive

Foreign Direct Investment, Institutional Framework and Economic Growth

Hayat, Arshad (2016): Foreign Direct Investment, Institutional Framework and Economic Growth.

WarningThere is a more recent version of this item available.
[img]
Preview
PDF
MPRA_paper_74563.pdf

Download (423kB) | Preview

Abstract

The paper explores the role of institutional quality on economic growth and more specifically the role it plays through foreign direct investment. The paper uses an economic performance relevant indicators of institutional quality (both in aggregate and individual indicators) to evaluate its direct impact on economic growth and an indirect impact on economic growth via foreign direct investment. The paper applied instrumental variable model to a larger dataset of 106 countries and found that besides a strong direct positive effect on economic growth the aggregate institutional quality variable as well as all individual variables except for the rule of law have a small but significant indirect impact on economic that takes place through boosting foreign direct investment.

Available Versions of this Item

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.