CEU Electronic Theses and Dissertations, 2011
| Author | Gugerty, Gerald William |
|---|---|
| Title | Foreign Direct Investment and Host Country Institutions: A Pattern Analysis of the Complex and Light Manufacturing Sectors of Central and Eastern Europe |
| Summary | The research on the determinants of foreign direct investment is plentiful, however there are still many questions unanswered. This study identifies sectoral differences in preferences for certain institutions as an area where there has been little previous research, and investigates the differences in institutional preferences of the complex and light manufacturing sectors. It does so by comparing the prevelance of the sector in an economy, measured by the inward stock of each sector as a percentage of total FDI, with the quality of governance and economic institutions measured by the World Bank's Worldwide Governance Index and the European Bank of Reconstruction and Development's Transition Index, respectively. The study finds that democratic processes, government effectiveness, and respect for institutions, enterprise friendliness and financial sector development are favored by the complex manufacturing sector, though not necessarily regulatory quality or markets and trade reform. The light industry appears averse to high qualities of democratic processes, financial sector development and (weakly) respect for institutions. The study finds that heterogeneity of institutional preferences exists at the sector level, and indeed likely beneath. It highlights the intricate complexity involved in the interactions of foreign investors with host countries and concludes with implications for development. |
| Supervisor | Greskovits, Béla |
| Department | International Relations MA |
| Full text | https://www.etd.ceu.edu/2011/gugerty_gerald.pdf |
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