Investing across Borders with Heterogeneous Firms : Do FDI-Specific Regulations Matter?
This paper revisits the institutional determinants of foreign direct investment (FDI) using a comprehensive new data set on the regulations that govern FDI in more than 80 countries. It exploits the presence of confirmed zero investment flows betwe...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111213100258 http://hdl.handle.net/10986/3683 |
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okr-10986-3683 |
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| recordtype |
oai_dc |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNTING ARBITRATION ARBITRATIONS BENCHMARK BEST PRACTICE BILATERAL INVESTMENT BILATERAL INVESTMENT TREATIES BILATERAL INVESTMENT TREATY BILATERAL TRADE BILATERAL TRANSACTION BILATERAL TRANSACTIONS BUREAUCRATIC QUALITY BUSINESS ENVIRONMENT BUSINESS INDICATORS BUSINESSES CADASTRE CAPITAL FLOW CAPITAL FLOWS CASH FLOW CHAMBERS OF COMMERCE CHECKS CIVIL LAW COLONIALISM COMMERCIAL ACTIVITY COMMODITY COMMON LAW COMMON STOCK COMPARATIVE ADVANTAGE CONTRACT ENFORCEMENT COUNTRY RISK CROSS-COUNTRY DATA DEBT DEVELOPING COUNTRIES DEVELOPMENT POLICY DISPUTE RESOLUTION DOMESTIC CAPITAL DOMESTIC INVESTORS DOMESTIC MARKET ECONOMIC GROWTH ECONOMIC SIZE ECONOMICS LITERATURE ECONOMIES OF SCALE ELASTICITY ELASTICITY OF SUBSTITUTION ENFORCEMENT OF CONTRACTS ENFORCEMENT RIGHTS EXCHANGE RATES EXPENDITURE EXPENDITURES EXPORTER EXPORTERS EXPORTS EXPROPRIATION EXPROPRIATION RISKS FACTORS OF PRODUCTION FDI FINANCIAL CRISIS FIRM ASSETS FIRM SIZE FIXED COST FIXED COSTS FOREIGN AFFILIATES FOREIGN CAPITAL FOREIGN COMPANIES FOREIGN DIRECT INVESTMENT FOREIGN EQUITY FOREIGN INVESTMENT FOREIGN INVESTOR FOREIGN INVESTORS FOREIGN MARKET FOREIGN MARKETS FOREIGN OWNERSHIP GDP GDP PER CAPITA GLOBAL OUTPUT GOVERNANCE INDICATORS GROSS DOMESTIC PRODUCT GROWTH RATE HOME COUNTRY HOST COUNTRIES HOST COUNTRY INCOME INCOME LEVEL INCREASING RETURNS INDEBTEDNESS INFORMATION ASYMMETRY INNOVATIONS INSTITUTIONAL PRACTICES INSTRUMENT INSURANCE INTANGIBLE INTANGIBLE ASSETS INTERNATIONAL BANK INTERNATIONAL BUSINESS INTERNATIONAL LAW INTERNATIONAL TRADE INVENTORY INVESTING INVESTMENT BARRIER INVESTMENT BARRIERS INVESTMENT CONTRACTS INVESTMENT FLOW INVESTMENT FLOWS INVESTMENT FUNDS INVESTMENT INSTRUMENTS INVESTMENT PROMOTION INVESTMENT REGULATION INVESTMENT RESTRICTIONS INWARD FOREIGN DIRECT INVESTMENT JURISDICTION LAND VALUE LEGAL FRAMEWORK LEGAL FRAMEWORKS LEGAL PROVISIONS LEGAL REGIMES LESS DEVELOPED COUNTRIES LIBERALIZATION LIMITED LIABILITY LIMITED LIABILITY COMPANY LOCAL MARKETS LOSS OF INFORMATION MANUFACTURING MANUFACTURING FIRMS MARGINAL COST MARKET FAILURES MARKET SIZE MARKET TRANSACTION MAXIMUM LIKELIHOOD ESTIMATION MERGERS MISSING DATA MISSING VALUES MONOPOLISTIC COMPETITION MULTINATIONAL ENTERPRISES NATURAL RESOURCE OPEN ACCESS OPEN COUNTRIES OUTPUT POLITICAL STABILITY POTENTIAL INVESTMENT PRIVATE PROPERTY PRODUCT DIFFERENTIATION PRODUCTION COSTS PRODUCTIVITY PROPERTY RIGHTS RATE OF RETURN RATES OF RETURN REGISTRY REMITTANCE REMITTANCES RESERVES RESULT RESULTS RETURNS RISK OF EXPROPRIATION RISK OF REPUDIATION RULE OF LAW SHARE OF CAPITAL SHARE PRICES SHAREHOLDER SHAREHOLDER RIGHTS SHAREHOLDERS STARTUP STOCK DATA TAX TAX RATES TELECOMMUNICATIONS TIME PERIODS TRADE BARRIERS TRADE POLICY TRADE POLICY REFORMS TRADE PROTECTION TRADING TRANSACTION TRANSACTION COST TRANSACTION COSTS TREATIES TREATY USES UTILITY FUNCTION VALUATION VARIABLE COST VARIABLE COSTS WAGES WEB WORLD DEVELOPMENT INDICATORS WORLD MARKET WORLD TRADE WORLD TRADE ORGANIZATION |
| spellingShingle |
ACCOUNTING ARBITRATION ARBITRATIONS BENCHMARK BEST PRACTICE BILATERAL INVESTMENT BILATERAL INVESTMENT TREATIES BILATERAL INVESTMENT TREATY BILATERAL TRADE BILATERAL TRANSACTION BILATERAL TRANSACTIONS BUREAUCRATIC QUALITY BUSINESS ENVIRONMENT BUSINESS INDICATORS BUSINESSES CADASTRE CAPITAL FLOW CAPITAL FLOWS CASH FLOW CHAMBERS OF COMMERCE CHECKS CIVIL LAW COLONIALISM COMMERCIAL ACTIVITY COMMODITY COMMON LAW COMMON STOCK COMPARATIVE ADVANTAGE CONTRACT ENFORCEMENT COUNTRY RISK CROSS-COUNTRY DATA DEBT DEVELOPING COUNTRIES DEVELOPMENT POLICY DISPUTE RESOLUTION DOMESTIC CAPITAL DOMESTIC INVESTORS DOMESTIC MARKET ECONOMIC GROWTH ECONOMIC SIZE ECONOMICS LITERATURE ECONOMIES OF SCALE ELASTICITY ELASTICITY OF SUBSTITUTION ENFORCEMENT OF CONTRACTS ENFORCEMENT RIGHTS EXCHANGE RATES EXPENDITURE EXPENDITURES EXPORTER EXPORTERS EXPORTS EXPROPRIATION EXPROPRIATION RISKS FACTORS OF PRODUCTION FDI FINANCIAL CRISIS FIRM ASSETS FIRM SIZE FIXED COST FIXED COSTS FOREIGN AFFILIATES FOREIGN CAPITAL FOREIGN COMPANIES FOREIGN DIRECT INVESTMENT FOREIGN EQUITY FOREIGN INVESTMENT FOREIGN INVESTOR FOREIGN INVESTORS FOREIGN MARKET FOREIGN MARKETS FOREIGN OWNERSHIP GDP GDP PER CAPITA GLOBAL OUTPUT GOVERNANCE INDICATORS GROSS DOMESTIC PRODUCT GROWTH RATE HOME COUNTRY HOST COUNTRIES HOST COUNTRY INCOME INCOME LEVEL INCREASING RETURNS INDEBTEDNESS INFORMATION ASYMMETRY INNOVATIONS INSTITUTIONAL PRACTICES INSTRUMENT INSURANCE INTANGIBLE INTANGIBLE ASSETS INTERNATIONAL BANK INTERNATIONAL BUSINESS INTERNATIONAL LAW INTERNATIONAL TRADE INVENTORY INVESTING INVESTMENT BARRIER INVESTMENT BARRIERS INVESTMENT CONTRACTS INVESTMENT FLOW INVESTMENT FLOWS INVESTMENT FUNDS INVESTMENT INSTRUMENTS INVESTMENT PROMOTION INVESTMENT REGULATION INVESTMENT RESTRICTIONS INWARD FOREIGN DIRECT INVESTMENT JURISDICTION LAND VALUE LEGAL FRAMEWORK LEGAL FRAMEWORKS LEGAL PROVISIONS LEGAL REGIMES LESS DEVELOPED COUNTRIES LIBERALIZATION LIMITED LIABILITY LIMITED LIABILITY COMPANY LOCAL MARKETS LOSS OF INFORMATION MANUFACTURING MANUFACTURING FIRMS MARGINAL COST MARKET FAILURES MARKET SIZE MARKET TRANSACTION MAXIMUM LIKELIHOOD ESTIMATION MERGERS MISSING DATA MISSING VALUES MONOPOLISTIC COMPETITION MULTINATIONAL ENTERPRISES NATURAL RESOURCE OPEN ACCESS OPEN COUNTRIES OUTPUT POLITICAL STABILITY POTENTIAL INVESTMENT PRIVATE PROPERTY PRODUCT DIFFERENTIATION PRODUCTION COSTS PRODUCTIVITY PROPERTY RIGHTS RATE OF RETURN RATES OF RETURN REGISTRY REMITTANCE REMITTANCES RESERVES RESULT RESULTS RETURNS RISK OF EXPROPRIATION RISK OF REPUDIATION RULE OF LAW SHARE OF CAPITAL SHARE PRICES SHAREHOLDER SHAREHOLDER RIGHTS SHAREHOLDERS STARTUP STOCK DATA TAX TAX RATES TELECOMMUNICATIONS TIME PERIODS TRADE BARRIERS TRADE POLICY TRADE POLICY REFORMS TRADE PROTECTION TRADING TRANSACTION TRANSACTION COST TRANSACTION COSTS TREATIES TREATY USES UTILITY FUNCTION VALUATION VARIABLE COST VARIABLE COSTS WAGES WEB WORLD DEVELOPMENT INDICATORS WORLD MARKET WORLD TRADE WORLD TRADE ORGANIZATION Wagle, Swarnim Investing across Borders with Heterogeneous Firms : Do FDI-Specific Regulations Matter? |
| geographic_facet |
The World Region The World Region |
| relation |
Policy Research working paper ; no. WPS 5914 |
| description |
This paper revisits the institutional
determinants of foreign direct investment (FDI) using a
comprehensive new data set on the regulations that govern
FDI in more than 80 countries. It exploits the presence of
confirmed zero investment flows between countries to
estimate productivity cut-offs of firms that invest abroad
profitably. This approach corrects likely biases arising
from firm heterogeneity and country selection in a
theoretically derived gravity-type model. The analysis finds
inward FDI to be highly responsive to cross-country
variation in specific institutional provisions, such as
arbitration of disputes and legal procedures to establish
foreign subsidiaries. The importance of FDI-specific
provisions stands out even after controlling for the general
quality of institutions. Statutory openness to FDI, however,
has no association with actual inflow of investment. These
results are found to be robust to different specifications. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Wagle, Swarnim |
| author_facet |
Wagle, Swarnim |
| author_sort |
Wagle, Swarnim |
| title |
Investing across Borders with Heterogeneous Firms : Do FDI-Specific Regulations Matter? |
| title_short |
Investing across Borders with Heterogeneous Firms : Do FDI-Specific Regulations Matter? |
| title_full |
Investing across Borders with Heterogeneous Firms : Do FDI-Specific Regulations Matter? |
| title_fullStr |
Investing across Borders with Heterogeneous Firms : Do FDI-Specific Regulations Matter? |
| title_full_unstemmed |
Investing across Borders with Heterogeneous Firms : Do FDI-Specific Regulations Matter? |
| title_sort |
investing across borders with heterogeneous firms : do fdi-specific regulations matter? |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111213100258 http://hdl.handle.net/10986/3683 |
| _version_ |
1764387794521686016 |
| spelling |
okr-10986-36832021-04-23T14:02:11Z Investing across Borders with Heterogeneous Firms : Do FDI-Specific Regulations Matter? Wagle, Swarnim ACCOUNTING ARBITRATION ARBITRATIONS BENCHMARK BEST PRACTICE BILATERAL INVESTMENT BILATERAL INVESTMENT TREATIES BILATERAL INVESTMENT TREATY BILATERAL TRADE BILATERAL TRANSACTION BILATERAL TRANSACTIONS BUREAUCRATIC QUALITY BUSINESS ENVIRONMENT BUSINESS INDICATORS BUSINESSES CADASTRE CAPITAL FLOW CAPITAL FLOWS CASH FLOW CHAMBERS OF COMMERCE CHECKS CIVIL LAW COLONIALISM COMMERCIAL ACTIVITY COMMODITY COMMON LAW COMMON STOCK COMPARATIVE ADVANTAGE CONTRACT ENFORCEMENT COUNTRY RISK CROSS-COUNTRY DATA DEBT DEVELOPING COUNTRIES DEVELOPMENT POLICY DISPUTE RESOLUTION DOMESTIC CAPITAL DOMESTIC INVESTORS DOMESTIC MARKET ECONOMIC GROWTH ECONOMIC SIZE ECONOMICS LITERATURE ECONOMIES OF SCALE ELASTICITY ELASTICITY OF SUBSTITUTION ENFORCEMENT OF CONTRACTS ENFORCEMENT RIGHTS EXCHANGE RATES EXPENDITURE EXPENDITURES EXPORTER EXPORTERS EXPORTS EXPROPRIATION EXPROPRIATION RISKS FACTORS OF PRODUCTION FDI FINANCIAL CRISIS FIRM ASSETS FIRM SIZE FIXED COST FIXED COSTS FOREIGN AFFILIATES FOREIGN CAPITAL FOREIGN COMPANIES FOREIGN DIRECT INVESTMENT FOREIGN EQUITY FOREIGN INVESTMENT FOREIGN INVESTOR FOREIGN INVESTORS FOREIGN MARKET FOREIGN MARKETS FOREIGN OWNERSHIP GDP GDP PER CAPITA GLOBAL OUTPUT GOVERNANCE INDICATORS GROSS DOMESTIC PRODUCT GROWTH RATE HOME COUNTRY HOST COUNTRIES HOST COUNTRY INCOME INCOME LEVEL INCREASING RETURNS INDEBTEDNESS INFORMATION ASYMMETRY INNOVATIONS INSTITUTIONAL PRACTICES INSTRUMENT INSURANCE INTANGIBLE INTANGIBLE ASSETS INTERNATIONAL BANK INTERNATIONAL BUSINESS INTERNATIONAL LAW INTERNATIONAL TRADE INVENTORY INVESTING INVESTMENT BARRIER INVESTMENT BARRIERS INVESTMENT CONTRACTS INVESTMENT FLOW INVESTMENT FLOWS INVESTMENT FUNDS INVESTMENT INSTRUMENTS INVESTMENT PROMOTION INVESTMENT REGULATION INVESTMENT RESTRICTIONS INWARD FOREIGN DIRECT INVESTMENT JURISDICTION LAND VALUE LEGAL FRAMEWORK LEGAL FRAMEWORKS LEGAL PROVISIONS LEGAL REGIMES LESS DEVELOPED COUNTRIES LIBERALIZATION LIMITED LIABILITY LIMITED LIABILITY COMPANY LOCAL MARKETS LOSS OF INFORMATION MANUFACTURING MANUFACTURING FIRMS MARGINAL COST MARKET FAILURES MARKET SIZE MARKET TRANSACTION MAXIMUM LIKELIHOOD ESTIMATION MERGERS MISSING DATA MISSING VALUES MONOPOLISTIC COMPETITION MULTINATIONAL ENTERPRISES NATURAL RESOURCE OPEN ACCESS OPEN COUNTRIES OUTPUT PDF POLITICAL STABILITY POTENTIAL INVESTMENT PRIVATE PROPERTY PRODUCT DIFFERENTIATION PRODUCTION COSTS PRODUCTIVITY PROPERTY RIGHTS RATE OF RETURN RATES OF RETURN REGISTRY REMITTANCE REMITTANCES RESERVES RESULT RESULTS RETURNS RISK OF EXPROPRIATION RISK OF REPUDIATION RULE OF LAW SHARE OF CAPITAL SHARE PRICES SHAREHOLDER SHAREHOLDER RIGHTS SHAREHOLDERS STARTUP STOCK DATA TAX TAX RATES TELECOMMUNICATIONS TIME PERIODS TRADE BARRIERS TRADE POLICY TRADE POLICY REFORMS TRADE PROTECTION TRADING TRANSACTION TRANSACTION COST TRANSACTION COSTS TREATIES TREATY USES UTILITY FUNCTION VALUATION VARIABLE COST VARIABLE COSTS WAGES WEB WORLD DEVELOPMENT INDICATORS WORLD MARKET WORLD TRADE WORLD TRADE ORGANIZATION This paper revisits the institutional determinants of foreign direct investment (FDI) using a comprehensive new data set on the regulations that govern FDI in more than 80 countries. It exploits the presence of confirmed zero investment flows between countries to estimate productivity cut-offs of firms that invest abroad profitably. This approach corrects likely biases arising from firm heterogeneity and country selection in a theoretically derived gravity-type model. The analysis finds inward FDI to be highly responsive to cross-country variation in specific institutional provisions, such as arbitration of disputes and legal procedures to establish foreign subsidiaries. The importance of FDI-specific provisions stands out even after controlling for the general quality of institutions. Statutory openness to FDI, however, has no association with actual inflow of investment. These results are found to be robust to different specifications. 2012-03-19T18:06:47Z 2012-03-19T18:06:47Z 2011-12-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111213100258 http://hdl.handle.net/10986/3683 English Policy Research working paper ; no. WPS 5914 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region |