Membership has its privileges: the effect of membership in international organizations on FDI
We argue that membership in International Organizations (IOs) is an important determinant of FDI inflows. To the extent that membership restricts a country from pursuing policies that are harmful to investors, it can signal low political risk. Using data over the 1971-2005 period, we find that membe...
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| Main Authors: | , , |
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| Format: | Book/Monograph Working Paper |
| Language: | German English |
| Published: |
Göttingen
CeGE
2010
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| Series: | Discussion papers / Center for European Governance and Economic Development Research
114 |
| In: |
Cege discussion paper (114)
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| Subjects: | |
| Online Access: | Verlag, Volltext: http://www.uni-goettingen.de/de/60920.html Verlag, Volltext: http://www.uni-goettingen.de/de/document/download/fc712ae2f45c8d390b7d49441a6ce860.pdf/114_Dreher.pdf Verlag, kostenfrei, Volltext: http://webdoc.gwdg.de/ebook/serien/lm/CEGE/114.pdf Download aus dem Internet, Stand 28.10.2010, Volltext: http://hdl.handle.net/10419/70226 
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| Author Notes: | Axel Dreher; Heiner Mikosch; Stefan Voigt |
| Summary: | We argue that membership in International Organizations (IOs) is an important determinant of FDI inflows. To the extent that membership restricts a country from pursuing policies that are harmful to investors, it can signal low political risk. Using data over the 1971-2005 period, we find that membership in IOs does indeed increase inflows of FDI. Controlling for the endogeneity of membership, we find this effect to be substantively important and robust to the method of estimation. -- Membership in International Organizations ; FDI ; Investment Climate ; Political Risk ; Signaling ; Separating Equilibrium |
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| Physical Description: | Online Resource |
| Format: | Acrobat Reader. Systemvoraussetzungen: Acrobat Reader. |