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N° 2005-05 |
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| April 2005 |
| Institutional Determinants of Foreign
Direct Investment |
Agnès Bénassy-Quéré
Maylis Coupet
Thierry Mayer |
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| In this paper, we contribute
to the literature on the determinants of FDI in developing countries and re-evaluate
the role of the quality of institutions on FDI. We use a newly available database,
with unprecedented detail on institutions of a set of 52 countries, and compare
the results with matched variables from more familiar datasets. The paper controls
for the correlation between institutions and GDP per capita of the host country,
and also accounts for potential endogeneity of institutions. Finally, we evaluate
whether proximity of institutions between the host and the origin country raises
bilateral FDI. |
Abstract |
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| Foreign Direct Investment, Gravity model, Institutions,
Developing countries |
Keywords |
| F23, R3 |
JEL classification |
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