Do Institutional Variables affect FDI inflows? A Panel Data Analysis of South Asian Countries
Journal Title: FOCUS: Journal of International Business - Year 2017, Vol 4, Issue 2
Abstract
The study addresses several questions related to the effect of institutional variables on foreign direct investment inflows in South Asian countries consisting of Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. The institutional variables taken in the study include control of corruption, political instability, quality of governance, regulatory quality, and rule of law. The paper uses panel data for the period of 1990-2015. The objective of this paper is to study the impact of institutional determinants on FDI inflows in eight South Asian countries. The main findings of the paper indicate that government effectiveness and trade openness are having a positive impact on FDI inflows while control of corruption and regulatory quality have negatively affected FDI inflows in these eight South Asian Countries.
Authors and Affiliations
Vandana Goswami
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