Doğrudan Yabancı Yatırımlar ve Kurumsal Gelişmişlik İlişkisi

Abstract

This dissertation examines the relationship between foreign direct investment inflows (FD I) and institutional development for developing countries by applying various empirical methods. This study contributes to the literature in several ways. First, in this study, a dynamic threshold panel methodology is employed to analyze whether a certain level of institutional development should be attained to attract more foreign direct investment. Second, the impact of the institutional development is analyzed by using both a composite index constructed by principal components method and by using differe nt institutional indicators individually. Finally, this study considers the effect of Great Recession in 2008 - 2009 on foreign direct investment inflows and extends the determinants of foreign direct investment literature by adding global liquidity and glob al risk measures. Our empirical results are based on 126 developing countries over the period 2002 - 2012. T he results of the study suggests that when aggregated index is used, the institutional development affects foreign direct investment inflows positivel y and significantly only after this measure exceeds a certain threshold value. Using different dimensions of institutional development, it is found that there are threshold effects in terms of control of corruption, government effectiveness, regulatory qua lity and voice and accountability. Therefore, policy makers in developing countries should take measures to improve institutional development to attract more FDI.