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The influence of Doing Business’ institutional variables in Foreign Direct Investment

Author

Listed:
  • Andreia Olival

    (Católica Lisbon School Of Business and Economics)

Abstract
The growing importance of institutions as a determinant of inward FDI has sparked interest in determining their relationship. In the present study, we intended to explore the relationship between the institutional variables of the Doing Business report and inward FDI. The main question is whether Doing Business indicators explain worldwide differences in FDI. Doing Business is an international report that describes the business environment in various countries, through quantitative and qualitative indicators of the functioning of representative institutions. Our analysis covers 33 advanced economies and 144 developing countries for the 2004-2009 periods. The major implication is that in general, a better rated business environment is more likely to attract greater amounts of FDI, especially in case of developing countries. Moreover institutional areas that are most likely to influence inward FDI are: starting a business, registering a property and trading across borders.

Suggested Citation

  • Andreia Olival, 2012. "The influence of Doing Business’ institutional variables in Foreign Direct Investment," GEE Papers 0048, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Dec 2012.
    • Handle: RePEc:mde:wpaper:0048
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    File URL: https://www.gee.gov.pt/RePEc/WorkingPapers/GEE_PAPERS_48.pdf
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    References listed on IDEAS

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    Cited by:

    1. Bersan Haliti & Safet Merovci, 2020. "The Impact of the Investment Environment on Foreign Direct Investment (FDI) in the European Transition Economies," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 1, pages 138-147, March.
    2. Alessandro Borin & Riccardo Cristadoro & Elena Mattevi, 2014. "Foreign direct investment and institutional quality," Questioni di Economia e Finanza (Occasional Papers) 230, Bank of Italy, Economic Research and International Relations Area.
    3. Akujuru, Chukunonye A. (PhD) & Enyioko, Newman C. (PhD), 2022. "Ease of Doing Business Policy and Efficiency of Public Enterprise in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(11), pages 501-522, November.
    4. Alessandro Borin & Riccardo Cristadoro, 2014. "Foreign direct investment and multinational firms," Questioni di Economia e Finanza (Occasional Papers) 243, Bank of Italy, Economic Research and International Relations Area.
    5. Haliti Bersan & Merovci Safet & Hetemi Alban & Sherpa Sanjib, 2019. "The Impact of the Ease Doing Business Indicators on Foreign Direct Investment in the European Transition Economies," Ekonomika (Economics), Sciendo, vol. 98(2), pages 19-32, December.

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    More about this item

    Keywords

    Foreign Direct Investment; Institutional determinants; Doing Business;
    All these keywords.

    JEL classification:

    • F30 - International Economics - - International Finance - - - General
    • H00 - Public Economics - - General - - - General

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