This is undoubtedly recognized that economic performance for each country over time is related to a great extent to its political, institutional and legal environment. In fact, these institutions and policies are that determine the governance quality. Â In a panel data study, we applied newly developed indices to examine the effects of good governance on FDI for fifteen middle-income countries during the period 1996-2005. Findings reveal the good governance, GDP per capita and telephone mainlines (per 1000 people) have significant and positive effects on foreign direct investment. But there is a statistically significant negative relationship between inflation and foreign direct investment. Â Finally, good governance burden breakdown into its components: voice and accountability, political instability and violence, government effectiveness, regulatory burden, rule of law, corruption . The results of the model indicate that the good governance burden components have significant and positive effects on foreign direct investment. JEL Classification: F21, G15, G33
Mehrara, M. and Asadian, Z. (2023). The Effects of Good Governance on Foreign Direct Investment in Middle-Income Countries. International Economics Studies, 35(2), 1-20. doi: 10.22108/ies.2023.15514
MLA
Mehrara, M. , and Asadian, Z. . "The Effects of Good Governance on Foreign Direct Investment in Middle-Income Countries", International Economics Studies, 35, 2, 2023, 1-20. doi: 10.22108/ies.2023.15514
HARVARD
Mehrara, M., Asadian, Z. (2023). 'The Effects of Good Governance on Foreign Direct Investment in Middle-Income Countries', International Economics Studies, 35(2), pp. 1-20. doi: 10.22108/ies.2023.15514
CHICAGO
M. Mehrara and Z. Asadian, "The Effects of Good Governance on Foreign Direct Investment in Middle-Income Countries," International Economics Studies, 35 2 (2023): 1-20, doi: 10.22108/ies.2023.15514
VANCOUVER
Mehrara, M., Asadian, Z. The Effects of Good Governance on Foreign Direct Investment in Middle-Income Countries. International Economics Studies, 2023; 35(2): 1-20. doi: 10.22108/ies.2023.15514
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