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This paper examines the respective impacts of public and private governance institutions on foreign direct and foreign portfolio investment inflows. We present two hypotheses: (1) there is a strong correlation between the quality of a country’s public governance institutions and the amount of foreign direct investment (FDI) received while the quality of its private governance institutions has no further discernible impact on this correlation; (2) there is a strong correlation between the quality of a country’s public governance institutions and the amount of foreign portfolio investment (FPI) received while the quality of its private governance institutions has a further positive impact on this correlation. Our findings, which are based on panel data analysis, show both hypotheses to be valid.
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http://www.tandfonline.com/doi/abs/10.1080/02692171.2016.1208737
citation
Lysandrou, P., Helen Solomon, O., & Goda, T. (2016). The Differential Impact of Public and Private Governance Institutions on the Different Modes of Foreign Investment. International Review of Applied Economics, 1-18.