Climbing to the Top? Foreign Direct Investment and Property Rights

This article operates at the interface of the literature on the impact of foreign direct investment (FDI) on host countries and the literature on the determinants of institutional quality. We argue that FDI contributes to economic development by improving institutional quality in the host country. T...

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Main Authors:	Ali, Fathi, Fiess, Norbert, MacDonald, Ronald
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Institutions: Design, Formation, and Operations D020 Multinational Firms International Business F230 Formal and Informal Sectors Shadow Economy Institutional Arrangements O170 Institutions and Growth O430 Capitalist Systems: Property Rights P140
Online Access:	http://hdl.handle.net/10986/5540

id	okr-10986-5540
recordtype	oai_dc
spelling	okr-10986-55402021-04-23T14:02:22Z Climbing to the Top? Foreign Direct Investment and Property Rights Ali, Fathi Fiess, Norbert MacDonald, Ronald Institutions: Design, Formation, and Operations D020 Multinational Firms International Business F230 Formal and Informal Sectors Shadow Economy Institutional Arrangements O170 Institutions and Growth O430 Capitalist Systems: Property Rights P140 This article operates at the interface of the literature on the impact of foreign direct investment (FDI) on host countries and the literature on the determinants of institutional quality. We argue that FDI contributes to economic development by improving institutional quality in the host country. This proposition is tested within a large panel data set of 70 developing countries for the period 1981-2005. We show that FDI inflows have a positive and highly significant impact on property rights. Results are very robust and not affected by model specification, different control variables, or estimation technique. To our knowledge this is the first article to empirically test the FDI-property rights linkage. 2012-03-30T07:33:19Z 2012-03-30T07:33:19Z 2011 Journal Article Economic Inquiry 00952583 http://hdl.handle.net/10986/5540 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Institutions: Design, Formation, and Operations D020 Multinational Firms International Business F230 Formal and Informal Sectors Shadow Economy Institutional Arrangements O170 Institutions and Growth O430 Capitalist Systems: Property Rights P140
spellingShingle	Institutions: Design, Formation, and Operations D020 Multinational Firms International Business F230 Formal and Informal Sectors Shadow Economy Institutional Arrangements O170 Institutions and Growth O430 Capitalist Systems: Property Rights P140 Ali, Fathi Fiess, Norbert MacDonald, Ronald Climbing to the Top? Foreign Direct Investment and Property Rights
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	This article operates at the interface of the literature on the impact of foreign direct investment (FDI) on host countries and the literature on the determinants of institutional quality. We argue that FDI contributes to economic development by improving institutional quality in the host country. This proposition is tested within a large panel data set of 70 developing countries for the period 1981-2005. We show that FDI inflows have a positive and highly significant impact on property rights. Results are very robust and not affected by model specification, different control variables, or estimation technique. To our knowledge this is the first article to empirically test the FDI-property rights linkage.
format	Journal Article
author	Ali, Fathi Fiess, Norbert MacDonald, Ronald
author_facet	Ali, Fathi Fiess, Norbert MacDonald, Ronald
author_sort	Ali, Fathi
title	Climbing to the Top? Foreign Direct Investment and Property Rights
title_short	Climbing to the Top? Foreign Direct Investment and Property Rights
title_full	Climbing to the Top? Foreign Direct Investment and Property Rights
title_fullStr	Climbing to the Top? Foreign Direct Investment and Property Rights
title_full_unstemmed	Climbing to the Top? Foreign Direct Investment and Property Rights
title_sort	climbing to the top? foreign direct investment and property rights
publishDate	2012
url	http://hdl.handle.net/10986/5540
_version_	1764395418862485504

Climbing to the Top? Foreign Direct Investment and Property Rights

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