Publication:
Investing across Borders with Heterogeneous Firms : Do FDI-Specific Regulations Matter?

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dc.contributor.authorWagle, Swarnim
dc.date.accessioned2012-03-19T18:06:47Z
dc.date.available2012-03-19T18:06:47Z
dc.date.issued2011-12-01
dc.description.abstractThis 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.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111213100258
dc.identifier.doi10.1596/1813-9450-5914
dc.identifier.urihttps://hdl.handle.net/10986/3683
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 5914
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING
dc.subjectARBITRATION
dc.subjectARBITRATIONS
dc.subjectBENCHMARK
dc.subjectBEST PRACTICE
dc.subjectBILATERAL INVESTMENT
dc.subjectBILATERAL INVESTMENT TREATIES
dc.subjectBILATERAL INVESTMENT TREATY
dc.subjectBILATERAL TRADE
dc.subjectBILATERAL TRANSACTION
dc.subjectBILATERAL TRANSACTIONS
dc.subjectBUREAUCRATIC QUALITY
dc.subjectBUSINESS ENVIRONMENT
dc.subjectBUSINESS INDICATORS
dc.subjectBUSINESSES
dc.subjectCADASTRE
dc.subjectCAPITAL FLOW
dc.subjectCAPITAL FLOWS
dc.subjectCASH FLOW
dc.subjectCHAMBERS OF COMMERCE
dc.subjectCHECKS
dc.subjectCIVIL LAW
dc.subjectCOLONIALISM
dc.subjectCOMMERCIAL ACTIVITY
dc.subjectCOMMODITY
dc.subjectCOMMON LAW
dc.subjectCOMMON STOCK
dc.subjectCOMPARATIVE ADVANTAGE
dc.subjectCONTRACT ENFORCEMENT
dc.subjectCOUNTRY RISK
dc.subjectCROSS-COUNTRY DATA
dc.subjectDEBT
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPMENT POLICY
dc.subjectDISPUTE RESOLUTION
dc.subjectDOMESTIC CAPITAL
dc.subjectDOMESTIC INVESTORS
dc.subjectDOMESTIC MARKET
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC SIZE
dc.subjectECONOMICS LITERATURE
dc.subjectECONOMIES OF SCALE
dc.subjectELASTICITY
dc.subjectELASTICITY OF SUBSTITUTION
dc.subjectENFORCEMENT OF CONTRACTS
dc.subjectENFORCEMENT RIGHTS
dc.subjectEXCHANGE RATES
dc.subjectEXPENDITURE
dc.subjectEXPENDITURES
dc.subjectEXPORTER
dc.subjectEXPORTERS
dc.subjectEXPORTS
dc.subjectEXPROPRIATION
dc.subjectEXPROPRIATION RISKS
dc.subjectFACTORS OF PRODUCTION
dc.subjectFDI
dc.subjectFINANCIAL CRISIS
dc.subjectFIRM ASSETS
dc.subjectFIRM SIZE
dc.subjectFIXED COST
dc.subjectFIXED COSTS
dc.subjectFOREIGN AFFILIATES
dc.subjectFOREIGN CAPITAL
dc.subjectFOREIGN COMPANIES
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectFOREIGN EQUITY
dc.subjectFOREIGN INVESTMENT
dc.subjectFOREIGN INVESTOR
dc.subjectFOREIGN INVESTORS
dc.subjectFOREIGN MARKET
dc.subjectFOREIGN MARKETS
dc.subjectFOREIGN OWNERSHIP
dc.subjectGDP
dc.subjectGDP PER CAPITA
dc.subjectGLOBAL OUTPUT
dc.subjectGOVERNANCE INDICATORS
dc.subjectGROSS DOMESTIC PRODUCT
dc.subjectGROWTH RATE
dc.subjectHOME COUNTRY
dc.subjectHOST COUNTRIES
dc.subjectHOST COUNTRY
dc.subjectINCOME
dc.subjectINCOME LEVEL
dc.subjectINCREASING RETURNS
dc.subjectINDEBTEDNESS
dc.subjectINFORMATION ASYMMETRY
dc.subjectINNOVATIONS
dc.subjectINSTITUTIONAL PRACTICES
dc.subjectINSTRUMENT
dc.subjectINSURANCE
dc.subjectINTANGIBLE
dc.subjectINTANGIBLE ASSETS
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL BUSINESS
dc.subjectINTERNATIONAL LAW
dc.subjectINTERNATIONAL TRADE
dc.subjectINVENTORY
dc.subjectINVESTING
dc.subjectINVESTMENT BARRIER
dc.subjectINVESTMENT BARRIERS
dc.subjectINVESTMENT CONTRACTS
dc.subjectINVESTMENT FLOW
dc.subjectINVESTMENT FLOWS
dc.subjectINVESTMENT FUNDS
dc.subjectINVESTMENT INSTRUMENTS
dc.subjectINVESTMENT PROMOTION
dc.subjectINVESTMENT REGULATION
dc.subjectINVESTMENT RESTRICTIONS
dc.subjectINWARD FOREIGN DIRECT INVESTMENT
dc.subjectJURISDICTION
dc.subjectLAND VALUE
dc.subjectLEGAL FRAMEWORK
dc.subjectLEGAL FRAMEWORKS
dc.subjectLEGAL PROVISIONS
dc.subjectLEGAL REGIMES
dc.subjectLESS DEVELOPED COUNTRIES
dc.subjectLIBERALIZATION
dc.subjectLIMITED LIABILITY
dc.subjectLIMITED LIABILITY COMPANY
dc.subjectLOCAL MARKETS
dc.subjectLOSS OF INFORMATION
dc.subjectMANUFACTURING
dc.subjectMANUFACTURING FIRMS
dc.subjectMARGINAL COST
dc.subjectMARKET FAILURES
dc.subjectMARKET SIZE
dc.subjectMARKET TRANSACTION
dc.subjectMAXIMUM LIKELIHOOD ESTIMATION
dc.subjectMERGERS
dc.subjectMISSING DATA
dc.subjectMISSING VALUES
dc.subjectMONOPOLISTIC COMPETITION
dc.subjectMULTINATIONAL ENTERPRISES
dc.subjectNATURAL RESOURCE
dc.subjectOPEN ACCESS
dc.subjectOPEN COUNTRIES
dc.subjectOUTPUT
dc.subjectPDF
dc.subjectPOLITICAL STABILITY
dc.subjectPOTENTIAL INVESTMENT
dc.subjectPRIVATE PROPERTY
dc.subjectPRODUCT DIFFERENTIATION
dc.subjectPRODUCTION COSTS
dc.subjectPRODUCTIVITY
dc.subjectPROPERTY RIGHTS
dc.subjectRATE OF RETURN
dc.subjectRATES OF RETURN
dc.subjectREGISTRY
dc.subjectREMITTANCE
dc.subjectREMITTANCES
dc.subjectRESERVES
dc.subjectRESULT
dc.subjectRESULTS
dc.subjectRETURNS
dc.subjectRISK OF EXPROPRIATION
dc.subjectRISK OF REPUDIATION
dc.subjectRULE OF LAW
dc.subjectSHARE OF CAPITAL
dc.subjectSHARE PRICES
dc.subjectSHAREHOLDER
dc.subjectSHAREHOLDER RIGHTS
dc.subjectSHAREHOLDERS
dc.subjectSTARTUP
dc.subjectSTOCK DATA
dc.subjectTAX
dc.subjectTAX RATES
dc.subjectTELECOMMUNICATIONS
dc.subjectTIME PERIODS
dc.subjectTRADE BARRIERS
dc.subjectTRADE POLICY
dc.subjectTRADE POLICY REFORMS
dc.subjectTRADE PROTECTION
dc.subjectTRADING
dc.subjectTRANSACTION
dc.subjectTRANSACTION COST
dc.subjectTRANSACTION COSTS
dc.subjectTREATIES
dc.subjectTREATY
dc.subjectUSES
dc.subjectUTILITY FUNCTION
dc.subjectVALUATION
dc.subjectVARIABLE COST
dc.subjectVARIABLE COSTS
dc.subjectWAGES
dc.subjectWEB
dc.subjectWORLD DEVELOPMENT INDICATORS
dc.subjectWORLD MARKET
dc.subjectWORLD TRADE
dc.subjectWORLD TRADE ORGANIZATION
dc.titleInvesting across Borders with Heterogeneous Firms : Do FDI-Specific Regulations Matter?en
dspace.entity.typePublication
okr.crossref.titleInvesting across Borders with Heterogeneous Firms: Do FDI-Specific Regulations Matter?
okr.date.disclosure2011-12-01
okr.date.doiregistration2025-04-10T11:06:32.707898Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111213100258
okr.guid271111468182678153
okr.identifier.doi10.1596/1813-9450-5914
okr.identifier.externaldocumentum000158349_20111213100258
okr.identifier.internaldocumentum15547834
okr.identifier.reportWPS5914
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2011/12/13/000158349_20111213100258/Rendered/PDF/WPS5914.pdfen
okr.region.administrativeThe World Region
okr.region.administrativeThe World Region
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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