Foreign Direct Investment, Institutional Quality and Economic Growth

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F26482789%3A_____%2F19%3AN0000044" target="_blank" >RIV/26482789:_____/19:N0000044 - isvavai.cz</a>
Result on the web
<a href="https://www.tandfonline.com/doi/abs/10.1080/09638199.2018.1564064?journalCode=rjte20" target="_blank" >https://www.tandfonline.com/doi/abs/10.1080/09638199.2018.1564064?journalCode=rjte20</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1080/09638199.2018.1564064" target="_blank" >10.1080/09638199.2018.1564064</a>

Result language
angličtina
Original language name
Foreign Direct Investment, Institutional Quality and Economic Growth
Original language description
Institutional quality is considered to be an important factor in boosting the 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
—
Czech description
—

Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
—
OECD FORD branch
50202 - Applied Economics, Econometrics

Publication year
2019
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical
The Journal of International Trade & Economic Development
ISSN
0963-8199
e-ISSN
1469-9559
Volume of the periodical
28/2019
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

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