TY - JOUR
T1 - Indicators of business environment, institutional quality and foreign direct investment in Gulf Cooperation Council (GCC) countries
AU - Gani, Azmat
AU - Al-Abri, Almukhtar Saif
PY - 2013/7
Y1 - 2013/7
N2 - This paper empirically investigates the effect of five business environment indicators and four measures of institutional quality on FDI inflows in GCC countries. The empirical results reveal that the time required to start a business, the time required to enforce a contract, the time required to register a property and the time required to resolve insolvency are negatively and statistically significantly correlated with FDI inflows. Our findings also confirm that political instability and absence of democracy, in fact, encourages FDI inflows. We conclude that the business environment strongly matters for FDI inflows into the GCC countries.
AB - This paper empirically investigates the effect of five business environment indicators and four measures of institutional quality on FDI inflows in GCC countries. The empirical results reveal that the time required to start a business, the time required to enforce a contract, the time required to register a property and the time required to resolve insolvency are negatively and statistically significantly correlated with FDI inflows. Our findings also confirm that political instability and absence of democracy, in fact, encourages FDI inflows. We conclude that the business environment strongly matters for FDI inflows into the GCC countries.
KW - Foreign direct investment
KW - GCC countries
KW - business environment
KW - growth
KW - institutional quality
KW - openness
UR - http://www.scopus.com/inward/record.url?scp=84880956187&partnerID=8YFLogxK
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U2 - 10.1080/02692171.2012.760066
DO - 10.1080/02692171.2012.760066
M3 - Article
AN - SCOPUS:84880956187
SN - 0269-2171
VL - 27
SP - 515
EP - 530
JO - International Review of Applied Economics
JF - International Review of Applied Economics
IS - 4
ER -