Foreign direct investments, institutional quality, and economic growth
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F19%3A10394905" target="_blank" >RIV/00216208:11230/19:10394905 - isvavai.cz</a>
Result on the web
<a href="https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=1jPMUEnvVe" target="_blank" >https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=1jPMUEnvVe</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1080/09638199.2018.1564064" target="_blank" >10.1080/09638199.2018.1564064</a>
Alternative languages
Result language
angličtina
Original language name
Foreign direct investments, institutional quality, and economic growth
Original language description
Institutional quality is considered to be an important factor in boosting economic growth of a country. This paper explores the role of institutional quality in economic growth and more specifically the role it plays via the channel of foreign direct investments. This paper uses a larger dataset of 104 countries and applies GMM estimation method to a dynamic panel data to evaluate the direct impact of institutional quality on economic growth and the indirect impact of institutional quality on economic growth through enhancing the FDI-induced economic growth. This paper provides evidence that both FDI inflows and institutional quality cause stronger economic growth. The FDI-led growth, however, was only experienced in the low and middle-income countries. In these countries, better institutional quality was also found to be enhancing the FDI-led economic growth. An important finding of this paper is that in the high-income countries, FDI was found to slow down the economic growth. The results are robust and consistent for individual institutional quality indicators and controlling for endogeneity.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50201 - Economic Theory
Result continuities
Project
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Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2019
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Journal of International Trade and Economic Development
ISSN
0963-8199
e-ISSN
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Volume of the periodical
28
Issue of the periodical within the volume
5
Country of publishing house
GB - UNITED KINGDOM
Number of pages
19
Pages from-to
561-579
UT code for WoS article
000470021700003
EID of the result in the Scopus database
2-s2.0-85059535716