Given the important role inward FDI can play in accelerating economic growth and transformation, developing countries are interested in attracting it. This study contributes to evidence based policy making and to academic research on governance FDI relationship by meta synthesising 771 estimates from 48 empirical studies published from 1980 - 2012. In comparison to less regulated and high corrupt countries meta-regression results show that countries with high regulation and low levels of corruption are able to attract more FDI. Countries with stronger legal systems are positively related to inward FDI. As expected, aggregate governance is found to have a positive effect on inward FDI.
FDI governance meta-regression analysis systematic literature review South and East Asia & Pacific countries