Publication detail

Foreign Direct Investments, Institutional Framework and Economic Growth

Author(s): PhDr. Arshad Hayat MA. MSc.,
Type: IES Working Papers
Year: 2017
Number: 9
ISSN / ISBN:
Published in: IES Working Papers 09/2017
Publishing place: Prague
Keywords: Foreign Direct Investments, Institutional Quality, Economic Growth, GMM
JEL codes:
Suggested Citation: Hayat A. (2017). ”Foreign Direct Investments, Institutional Framework and Economic Growth” IES Working Paper 9/2017. IES FSV. Charles University.
Abstract: 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 economic performance-relevant indicators of institutional quality (both an aggregated variable of institutional quality and individual indicators) to evaluate their direct impact on economic growth and their indirect impact on economic growth via foreign direct investments. This paper uses a larger dataset of 104 countries and applies GMM estimation method to a dynamic panel data and finds that FDI inflows cause stronger economic growth in countries with better institutional quality compared to countries with lower institutional quality. The same is true for individual institutional quality measure.
Downloadable: wp_2017_09_hayat

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