{"id":6738,"date":"2021-10-06T09:48:01","date_gmt":"2021-10-06T01:48:01","guid":{"rendered":"https:\/\/www.ukm.my\/jem\/?post_type=article&#038;p=6738"},"modified":"2022-07-27T06:35:22","modified_gmt":"2022-07-26T22:35:22","slug":"the-effect-of-institutional-quality-on-foreign-direct-investment","status":"publish","type":"article","link":"https:\/\/www.ukm.my\/jem\/article\/the-effect-of-institutional-quality-on-foreign-direct-investment\/","title":{"rendered":"The Effect of Institutional Quality on Foreign Direct Investment"},"content":{"rendered":"<p><em>This study analyzes the impact of institutional quality on foreign direct investment (FDI). We apply panel regressions on a sample of 13 Organization of Islamic Cooperation (OIC) countries over 2002 \u2013 2019. The empirical results show that institutional quality plays a vital role in determining the flow of foreign investments.<\/em><em> Specifically, better regulatory quality tends to increase the inflow<\/em><em>. The findings further show that countries with higher Gross Domestic Products (GDP) have greater capacity to attract larger investment flows. Additionally, <\/em><em>a lower tax rate is expected to encourage the inflow of foreign investments. Finally, there is evidence that corruption encourages greater inflow of \u00a0FDI. <\/em><\/p>\n","protected":false},"template":"","tags":[426,1290,767,586],"jel-code":[1335],"article-type":[1329],"class_list":["entry","author-asriwn","post-6738","article","type-article","status-publish","tag-foreign-direct-investment","tag-gdp","tag-institutional-quality","tag-oic-countries","jel-code-f21","article-type-normal-article"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Effect of Institutional Quality on Foreign Direct Investment | Jurnal Ekonomi Malaysia<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ukm.my\/jem\/article\/the-effect-of-institutional-quality-on-foreign-direct-investment\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Effect of Institutional Quality on Foreign Direct Investment | Jurnal Ekonomi Malaysia\" \/>\n<meta property=\"og:description\" content=\"This study analyzes the impact of institutional quality on foreign direct investment (FDI). We apply panel regressions on a sample of 13 Organization of Islamic Cooperation (OIC) countries over 2002 \u2013 2019. The empirical results show that institutional quality plays a vital role in determining the flow of foreign investments.Continue Reading\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.ukm.my\/jem\/article\/the-effect-of-institutional-quality-on-foreign-direct-investment\/\" \/>\n<meta property=\"og:site_name\" content=\"Jurnal Ekonomi Malaysia\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Jurnal-Ekonomi-Malaysia-JEM-104142808087485\" \/>\n<meta property=\"article:modified_time\" content=\"2022-07-26T22:35:22+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@EkonomiJurnal\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/the-effect-of-institutional-quality-on-foreign-direct-investment\\\/\",\"url\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/the-effect-of-institutional-quality-on-foreign-direct-investment\\\/\",\"name\":\"The Effect of Institutional Quality on Foreign Direct Investment | Jurnal Ekonomi Malaysia\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#website\"},\"datePublished\":\"2021-10-06T01:48:01+00:00\",\"dateModified\":\"2022-07-26T22:35:22+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/the-effect-of-institutional-quality-on-foreign-direct-investment\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/the-effect-of-institutional-quality-on-foreign-direct-investment\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/the-effect-of-institutional-quality-on-foreign-direct-investment\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Articles\",\"item\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"The Effect of Institutional Quality on Foreign Direct Investment\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#website\",\"url\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/\",\"name\":\"Jurnal Ekonomi Malaysia\",\"description\":\"Universiti Kebangsaan Malaysia\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#organization\",\"name\":\"Jurnal Ekonomi Malaysia\",\"url\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/wp-content\\\/uploads\\\/2021\\\/05\\\/cropped-browser-icon-letter-1.png\",\"contentUrl\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/wp-content\\\/uploads\\\/2021\\\/05\\\/cropped-browser-icon-letter-1.png\",\"width\":512,\"height\":308,\"caption\":\"Jurnal Ekonomi Malaysia\"},\"image\":{\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/Jurnal-Ekonomi-Malaysia-JEM-104142808087485\",\"https:\\\/\\\/x.com\\\/EkonomiJurnal\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The Effect of Institutional Quality on Foreign Direct Investment | Jurnal Ekonomi Malaysia","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.ukm.my\/jem\/article\/the-effect-of-institutional-quality-on-foreign-direct-investment\/","og_locale":"en_US","og_type":"article","og_title":"The Effect of Institutional Quality on Foreign Direct Investment | Jurnal Ekonomi Malaysia","og_description":"This study analyzes the impact of institutional quality on foreign direct investment (FDI). 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