<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>This paper uses dynamic panel data methods to examine the political indicators and governance quality indicators as determinants of foreign direct investment (FDI) into the Balkan and non-Balkan countries in transition. Our empirical model shows that the determinants, such as political terror scale and the control of corruption, have significant and plausible effects in the Balkan and non-Balkan countries in transition. In addition, analyzed factors such as government effectiveness and regulatory quality, which play important political roles in determining foreign direct investment flows into countries in transitions and help explain the differing attractiveness of individual countries to foreign investors in our empirical model, do not play a significant role in the inflow of foreign direct investment</p>
</abstract>

This paper uses dynamic panel data methods to examine the political indicators and governance quality indicators as determinants of foreign direct investment (FDI) into the Balkan and non-Balkan countries in transition. Our empirical model shows that the determinants, such as political terror scale and the control of corruption, have significant and plausible effects in the Balkan and non-Balkan countries in transition. In addition, analyzed factors such as government effectiveness and regulatory quality, which play important political roles in determining foreign direct investment flows into countries in transitions and help explain the differing attractiveness of individual countries to foreign investors in our empirical model, do not play a significant role in the inflow of foreign direct investment

Political Risk and Quality of Governance as Determinants of Foreign Direct Investments in the Transition Countries

Economic Themes

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

This paper uses dynamic panel data methods to examine the political indicators and governance quality indicators as determinants of foreign direct investment...

Political Risk and Quality of Governance as Determinants of Foreign Direct Investments in the Transition Countries

Published Online: Apr 05, 2023

Page range: 343 - 367

Received: Jan 26, 2022

Accepted: Sep 10, 2022

DOI: https://doi.org/10.2478/ethemes-2022-0019

Keywords
inflow FDI, governance quality, Balkan and non-Balkan countries

© 2022 Miloš Dašić, published by Sciendo

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

Political Risk and Quality of Governance as Determinants of Foreign Direct Investments in the Transition Countries

Published Online: Apr 05, 2023

Page range: 343 - 367

Received: Jan 26, 2022

Accepted: Sep 10, 2022

DOI: https://doi.org/10.2478/ethemes-2022-0019

Keywordsinflow FDI, governance quality, Balkan and non-Balkan countries

© 2022 Miloš Dašić, published by Sciendo

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

Keywords
inflow FDI, governance quality, Balkan and non-Balkan countries