TITLE

Effect of the Quality of Host Country Institutions on Reinvestment by United States Multinationals: A Panel Data Analysis

AUTHOR(S)
Oseghale, Braimoh D.; Nwachukwu, Osita C.
PUB. DATE
December 2010
SOURCE
International Journal of Management;Dec2010, Vol. 27 Issue 3, p497
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This study examines the effect of the quality of host country institutions on reinvestment decisions by United States multinationals. Six indicators of quality of institutions developed by Kaufmann et al., (1999) were used as measures of the quality of host country institutions. The six indicators are Voice and Accountability, Political Stability and Lack of Violence, Government Effectiveness, Regulatory Quality, Rule of Law, and Control of Corruption. These indicators have been found, by Kaufmann (1999) to be most important in assessing the overall quality of a country's institutions. Data for the indicators were obtained from the World Bank database for the 22 developing and emerging countries included in our sample. We used the Error Component regression analysis in assessing the effect of each of the six factors on a measure of overall reinvestment by US multinationals across the 22 countries. The statistical analysis reveals that the quality of host county institutions has a statistically significant effect on reinvestment decisions by US multinationals.
ACCESSION #
55094523

 

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