Влияние качества институтов и политической глобализации на приток прямых зарубежных инвестиций в страны Латинской Америки / Impact of institutional quality and political globalisation on FDI inflows in Latin American countries

Аннотация

Existing literature highlits a strong nexus between the quality of institutions and FDI inflow, overlooking the role of political globalization. Taking this into account, this study investigated the dynamic impact of institution quality and political globalization on FDI inflow incorporating the role of economic growth, labor force, corruption perception and exchange rate in the case of eleven Latin American countries. This study applyes CS-ARDL framework to analyze panel time series data over 1996-2022. The investigation of this study highlights several interesting findings. First, institutional quality appeared to be one of the most important factors that attracts FDI inflow in the long run, whereas corruption perception index plays no significant role. Second, political globalization is found to be crucial in attracting FDI inflow in the long run economies of Latin American countries. Third, economic growth and trade openness also play supportive roles to attract FDI inflow in the long run, whereas labor force plays a negative role. Finally, the empirical findings of this study provide several policy implications in attracting FDI inflow in Latin American countries.