| Author: | Globerman, S. Shapiro, D. |
| Title: | Governance Infrastructure ad Us Foreign Direct Investment |
| Journal: | Journal of International Business Studies
2003 : JAN, VOL. 34:1, p. 19-39 |
| Index terms: | USA FOREIGN INVESTMENT POWER INFRASTRUCTURES |
| Language: | eng |
| Abstract: | This paper examines the statistical importance of governance infrastructure as a determinant of US foreign direct investment (FDI). The econometric analysis uses a two-stage estimation procedure. In the first stage, the probability that a country is an FDI recipient is estimated. The results indicate that countries that fail to achieve a minimum threshold of effective governance are unlikely to receive any US FDI. Countries that receive no US FDI are typically countries that do not promote free and transparent markets, that have ineffective governments, and that often have legal systems that are not rooted in English common law. In the second stage, the analysis is restricted to those countries that did receive FDI flows. |
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