Do Institutional Variables affect FDI inflows? A Panel Data Analysis of South Asian Countries

Journal Title: FOCUS: Journal of International Business - Year 2017, Vol 4, Issue 2

Abstract

The study addresses several questions related to the effect of institutional variables on foreign direct investment inflows in South Asian countries consisting of Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. The institutional variables taken in the study include control of corruption, political instability, quality of governance, regulatory quality, and rule of law. The paper uses panel data for the period of 1990-2015. The objective of this paper is to study the impact of institutional determinants on FDI inflows in eight South Asian countries. The main findings of the paper indicate that government effectiveness and trade openness are having a positive impact on FDI inflows while control of corruption and regulatory quality have negatively affected FDI inflows in these eight South Asian Countries.

Authors and Affiliations

Vandana Goswami

Keywords

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  • EP ID EP623897
  • DOI 10.17492/focus.v4i02.11687
  • Views 234
  • Downloads 0

How To Cite

Vandana Goswami (2017). Do Institutional Variables affect FDI inflows? A Panel Data Analysis of South Asian Countries. FOCUS: Journal of International Business, 4(2), 26-43. https://www.europub.co.uk/articles/-A-623897