Does Public Governance Always Matter? How Experience Of Poor Institutional Quality Influences FDI To The South

This paper investigates whether the higher prevalence of South MultiNational Enterprises (MNEs) in risky developing countries may be explained by the experience that they have acquired of poor institutional quality at home. The authors confirm the intuition provided by the analytical model by empirically showing that the positive impact of good public governance on Foreign Direct Investment (FDI) in a given host country is moderated significantly, and even in some cases eliminated, when MNEs have been faced with poor institutional quality at home.

Provided by: CESifo Group Topic: Security Date Added: Dec 2010 Format: PDF

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