The impact of Institutional Distance on FDI inflows in the Czech Republic

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F25940082%3A_____%2F16%3AN0000018" target="_blank" >RIV/25940082:_____/16:N0000018 - isvavai.cz</a>

Result on the web

<a href="https://www.vse.cz/aop/495?lang=en" target="_blank" >https://www.vse.cz/aop/495?lang=en</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.18267/j.aop.495" target="_blank" >10.18267/j.aop.495</a>

Result language

angličtina

Original language name

The impact of Institutional Distance on FDI inflows in the Czech Republic

Original language description

This paper studies the impact of institutional distance on FDI inflows in a specific country, the Czech Republic. This study contributes to the literature on the importance of institutional distance between home and host country among the factors able to influence FDI. The novelty of our paper is that (1) we consider whether institutional distance matters also when the host country is already endowed with institutional standards relatively close to those of the main home countries of MNEs, and (2) we run separate investigations of home-host countries’ institutional distance, distinguishing between institutionally safer and less safe home countries in comparison with the host ones. The Czech Republic has been chosen in view of these perspectives, as (1) it has traditionally been considered as one of the most developed markets among those emerged from the socialist experience, its level of institutional development is close to that of the various home countries of MNEs, and (2) besides hosting MNEs from home countries endowed with safer institutions, it receives a certain amount of FDI also from countries with a relatively less safe institutional environment. Our results challenge the previous literature, in the sense that institutional distance may actually be perceived as an opportunity, especially by MNEs from home countries with higher levels of institutional development. Indeed, MNEs from home countries with less safe institutions than Czech ones follow a more ambiguous pattern.

Czech name

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Czech description

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Type

J_ost - Miscellaneous article in a specialist periodical

CEP classification

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OECD FORD branch

50202 - Applied Economics, Econometrics

Project

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Continuities

N - Vyzkumna aktivita podporovana z neverejnych zdroju

Publication year

2016

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Acta Oeconomica Pragensia

ISSN

0572-3043

e-ISSN

1804-2112

Volume of the periodical

2016

Issue of the periodical within the volume

1

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

12

Pages from-to

3-14

UT code for WoS article

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EID of the result in the Scopus database

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