Behave and Be Attractive: The Impact of Governance on FDI Inflows
This paper examines how governance affects FDI inflows using cross-country analysis for a sample of 156 countries over the period 1996-2004. It looks into six different dimension of governance, measured by indicators constructed by Kaufmann, Kraay and Zoido-Lobatón: (1) Voice and Accountability, (2) Political Stability and Violence, (3) Government Effectiveness, (4) Regulatory Quality, (5) Rule of