The role of institutional quality in promoting inflows of FDI in the case of small countries.
What is it about?
Improvement of institutional quality in developing countries has been seen as progressive. Unfortunately, the corresponding inflows of FDI are not proportionate with the level of better institutional quality of today. Hence, this study revisits the issues, focusing on small developing countries. The findings suggest that institutional quality is a necessary condition, but not sufficient condition in attracting FDI inflows.
Why is it important?
Focusing on institutional quality per se will not bring any significant inflows of FDI. Then, other domestic sectors should complement FDI in bringing positive consequences to better institutional quality.
The following have contributed to this page: Associate Professor Tajul Ariffin Masron