Template-Type: ReDIF-Paper 1.0
Author-Name: Julia  Darby
Author-Name-First: Julia 
Author-Name-Last: Darby
Author-Email: julia.darby@strath.ac.uk
Author-Workplace-Name: Department of Economics, University of Strathclyde
Author-Name: Rodolphe Desbordes
Author-Name-First: Rodolphe
Author-Name-Last: Desbordes
Author-Email: rodolphe.desbordes@strath.ac.uk
Author-Workplace-Name: Department of Economics, University of Strathclyde
Author-Name: Ian  Wooton
Author-Name-First: Ian 
Author-Name-Last: Wooton
Author-Email: ian.wooton@strath.ac.uk
Author-Workplace-Name: Department of Economics, University of Strathclyde
Title: Does Public Governance Always Matter? How Experience of Poor Institutional Quality Influences FDI to the South
Abstract: 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. We confirm the intuitions provided by our 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 or reversed, when MNEs have had prior experience of poor institutional quality at home.
Length: 44 pages
Creation-Date: 2010-02
Revision-Date: 
Publication-Status: 
File-URL: http://www.strath.ac.uk/media/1newwebsite/departmentsubject/economics/research/researchdiscussionpapers/2010/10-03Final.pdf
File-Format: Application/pdf
Number: 1003
Classification-JEL: F22
Keywords: South-South FDI; public governance; institutions
Handle: RePEc:str:wpaper:1003