Determinants of FDI Inflows in Advanced Economies: Does the Quality of Economic Structures Matter?

28 Pages Posted: 23 Jun 2017

See all articles by Konstantinos Dellis

Konstantinos Dellis

University of Piraeus

David Sondermann

European Central Bank (ECB)

Isabel Vansteenkiste

European Central Bank (ECB)

Date Written: May 19, 2017

Abstract

This paper investigates the role of economic structures as determinants of FDI inflows. We expand on the existing literature by focusing on advanced economies, using a newly available measure of FDI which cleans the data from statistical artefacts, such as financial round tripping, and by relying on a wide variety of measures that proxy the quality of a country’s economic structures. Our results show that there is an empirical relation from the quality of a host country’s economic structures to FDI inflows. These results are robust to various economic specifications and are confirmed when restricting our sample to euro area countries only.

Keywords: Foreign Direct Investment, Economic Structures, Institutions, Euro Area Countries

JEL Classification: F21, F23, L51, O43

Suggested Citation

Dellis, Konstantinos and Sondermann, David and Vansteenkiste, Isabel, Determinants of FDI Inflows in Advanced Economies: Does the Quality of Economic Structures Matter? (May 19, 2017). ECB Working Paper No. 2066. Available at SSRN: https://ssrn.com/abstract=2990996

Konstantinos Dellis (Contact Author)

University of Piraeus ( email )

Karaoli and Dimitriou 80
80 KARAOLI & DIMITRIOU STREET
Piraeus, Attiki 18534
Greece

David Sondermann

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Isabel Vansteenkiste

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Register to save articles to
your library

Register

Paper statistics

Downloads
119
Abstract Views
468
rank
233,157
PlumX Metrics