Institutions and Outward Foreign Direct Investment2

Artur Klimek

doi:10.1515/ijme-2015-0023

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Institutions and Outward Foreign Direct Investment2

International Journal of Management and Economics

Volume 46 (2015): Issue 1 (June 2015)

By: Artur Klimek

Open Access

|Sep 2015

Abstract

This paper explores the influence of the quality of a host country’s institutional environment on outflows from that country of foreign direct investment. The main finding of this paper is that such quality does play an important role, particularly with respect to governance quality and political stability. This implies that better institutional conditions may reduce undesirable outflows of capital, and the quality of those institutions may impact FDI effectiveness in host countries.

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