As an increasingly large link between China and the rest of the world, as well as a key component of economic policy, foreign direct investment (FDI) is an investment made by a party in one country in business interests in another country. It represents the influx of both capitalism and globalism in China. This paper investigates the link between FDI and regime stability by examining how FDI ha...

Does official aid pave the road for private foreign investment or does it suffocate private initiative by diverting resources towards unproductive activities? In this paper we explore this question using data for a large number of developing and emerging economies. Controlling for countries’ institutional environment, we find that, evaluated at the mean, the marginal effect of aid on private fo...

Does official aid pave the road for private foreign investment or does it suffocate private initiative by diverting resources towards unproductive activities? In this paper we explore this question using data for a large number of developing and emerging economies. Controlling for countries‘ institutional environment, we find that, evaluated at the mean, the marginal effect of aid on private fo...

the main object of this paper is to find out the impact of economic and institutional factors on export of services in considering the example of oic countries. panel data method as an econometrics approach is used for estimating models. results show that variables such as gdp per capita, the real exchange rate, foreign direct investment, and information infrastructures have positive and signif...

This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. Using a dataset which breaks down FDI flows into primary, sec...

This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. Using a dataset which breaks down FDI flows into primary, sec...

In this paper we analyse the impact of institutional uncertainty on vertical foreign direct investment (FDI) strategies. We also consider the impact of economic integration upon FDI decisions. The paper follows the real options approach, which allows investigating the value to a firm of waiting to invest and/or disinvest, when payoffs are stochastic due to institutional uncertainty and investme...

Based on a panel data analysis of 164 countries from 1996 to 2006, we examine the impact of institutional quality on foreign direct investment (FDI) levels and volatility. We find that good institutional quality matters to FDI. We provide evidence that institutional quality has a positive and significant effect on FDI. More specifically, we find that a one standard deviation change in instituti...

This paper examines the preferences of foreign and dometic institutional investors in Indian stock markets. Foreign and domestic institutional investors both prefer larger, widely dispersed firms and do not chase returns. However, we find evidence of strong differences in the behaviour of foreign and domestic institutional investors. Foreign investors prefer to buy private, liquid, young and gl...

This paper adds nuance to our understanding of institutional antecedents of foreign investment, in particular in global services sourcing. While prior research has stressed the various risks and effects associated with home-host country differences in national-level institutions, e.g. legal systems, we argue that industry-specific, yet often transnational field institutions, e.g. standards, hav...