<abstract xmlns="http://www.w3.org/1999/xhtml"><p>This paper examines long-term developments in the quality and efficiency of free market institutional systems across thirteen emerging economies from South, South-east, and East Asia over the 1995–2014 period. The paper also empirically assesses the impact of free market institutions on a country’s inward foreign direct investment (FDI) performance. We find that the free market institutional framework in most economies is still relatively inefficient, restrictive, and underdeveloped but has, nevertheless, substantially improved during the last twenty-year period. Our empirical results also indicate that a free market institutional system in a host-country is a factor that attracts inward FDI to emerging Asian economies by multinational companies. Consequently, policy makers should focus on further improving the quality of free market institutions.</p></abstract>

This paper examines long-term developments in the quality and efficiency of free market institutional systems across thirteen emerging economies from South, South-east, and East Asia over the 1995–2014 period. The paper also empirically assesses the impact of free market institutions on a country’s inward foreign direct investment (FDI) performance. We find that the free market institutional framework in most economies is still relatively inefficient, restrictive, and underdeveloped but has, nevertheless, substantially improved during the last twenty-year period. Our empirical results also indicate that a free market institutional system in a host-country is a factor that attracts inward FDI to emerging Asian economies by multinational companies. Consequently, policy makers should focus on further improving the quality of free market institutions.

Free Market Institutions and FDI Performance in Emerging Asian Economies

Faculty of Economics and Commerce, Hoa Sen University, Ho Chi Minh City,

International Journal of Management and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Free Market Institutions and FDI Performance in Emerging Asian Economies"}

This paper examines long-term developments in the quality and efficiency of free market institutional systems across thirteen emerging economies from South,...

Free Market Institutions and FDI Performance in Emerging Asian Economies

Published Online: Jan 23, 2017

Page range: 43 - 58

DOI: https://doi.org/10.1515/ijme-2016-0026

Keywords
economic institutions, multinationals, FDI, Asia, developing countries

© 2016 Klimis Vogiatzoglou, published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Free Market Institutions and FDI Performance in Emerging Asian Economies

Published Online: Jan 23, 2017

Page range: 43 - 58

DOI: https://doi.org/10.1515/ijme-2016-0026

Keywordseconomic institutions, multinationals, FDI, Asia, developing countries

© 2016 Klimis Vogiatzoglou, published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
economic institutions, multinationals, FDI, Asia, developing countries