RESEARCH OF SOCIAL SCIENCES (SMC-PRIVATE) LIMITED(ROSS) & PAKISTAN SOCIAL SCIENCES REVIEW (PSSR) adheres to Creative Commons Attribution-Non Commercial 4.0 International License. The authors submitting and publishing in PSSR agree to the copyright policy under creative common license 4.0 (Attribution-Non Commercial 4.0 International license). Under this license, the authors published in PSSR retain the copyright including publishing rights of their scholarly work and agree to let others remix, tweak, and build upon their work non-commercially. All other authors using the content of PSSR are required to cite author(s) and publisher in their work. Therefore, RESEARCH OF SOCIAL SCIENCES (SMC-PRIVATE) LIMITED(ROSS) & PAKISTAN SOCIAL SCIENCES REVIEW (PSSR) follow an Open Access Policy for copyright and licensing.
How to Cite
Institutional Governance and Foreign Direct Investments: Evidence from South Asian Emerging Markets
Abstract
The current study investigated the effect of institutional governance on foreign direct investment inflows in five South Asian emerging countries for the period of 1996–2017. The results of the Housman’s specification test support the fixed effects model could better fit the data. The estimated results showed that a governance variable such as control of corruption has positive and significant whereas, political stability, regulatory quality, and voice and accountability have a negative and significant impact on foreign direct investments. Moreover, the results of the market size have significant negative, whereas, level of development and trade openness is found to have a significant and positive effect on foreign direct investments. These results have important policy implications for South Asian emerging countries. The results suggest that countries should improve the quality of their business and institutional environment that would create an attraction for foreign investors.
Authors
Muhammad Naeem
Ph.D. Scholar, Department of Management Sciences, Islamia College Peshawar, KP, Pakistan
Hamid Ullah
Assistant Professors, Department of Management Sciences, Islamia College Peshawar, KP, Pakistan
Muhammad Kamran Khan
Lecturer, Department of Management Sciences & Commerce, Bacha Khan University, Charsadda, KP, Pakistan
Keywords
FDI, Institutional Governance, Panel Data, Rule of Law, South Asia
