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The nexus between governance factors and foreign direct investments: Evidence from panel data

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  • Zekeriya Mizirak

    (Faculty of Political Sciences, Necmettin Erbakan University, Konya, Turkey)

  • Kivanç AltintaÅŸ

    (Faculty of Political Sciences, Necmettin Erbakan University, Konya, Turkey)

Abstract

In recent years, Foreign Direct Investments (FDI) have been a vastly discussed economic term by both researchers and policy-makers. Foreign expertise provides various economic benefits to the host countries through improving existing production processes, increasing competitiveness and reducing disparities in welfare. Foreign direct investment flows could be influenced by several institutional, economic and political factors. This paper aims to check up on the empirical relation between FDI and these factors in a panel of 12 countries for 2002-2015 time period. In analysis, we employed an empirical method which considers cross-sectional dependence. Therefore, we explored long-term relations between variables through an estimation approach using Westerlund (2008) Durbin Hausman cointegration method and AMG estimator after unit root tests of variables. Empirical results clarify that there’s a positive connection between FDI and governance factors for some countries in the panel.

Suggested Citation

  • Zekeriya Mizirak & Kivanç AltintaÅŸ, 2018. "The nexus between governance factors and foreign direct investments: Evidence from panel data," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 4(1), pages 1-8.
    • Handle: RePEc:apb:jabsss:2018:p:1-8
    DOI: 10.20474/jabs-4.1.1
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    References listed on IDEAS

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    Cited by:

    1. Farrukh Nawaz Kayani & Ismat Nasim & Khalil Abu Saleem, 2024. "Analyzing the Impact of Governance, Environment and Trade on Inward FDI: A Case of Cambodia, Thailand and Vietnam from ASEAN," International Journal of Energy Economics and Policy, Econjournals, vol. 14(2), pages 523-534, March.
    2. Jui-Chuan Huang & Hsin-Hao Huang & Li-Shiue Gau, 2018. "The Study of Investment Motivation and Managerial Problems ofTaiwanese Companies in Cambodia," International Journal of Business and Economic Affairs (IJBEA), Sana N. Maswadeh, vol. 3(6), pages 237-243.

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