The effect of institutional factors on foreign direct investment: An econometric analysis

The purpose of this dissertation is to examine impact of institutional factors foreign direct investment (FDI) on economic growth in 117 developed and developing countries for the period of 1986 ? 2005 by using cross?sectional data. First part of the study describes theories about FDI, the kinds of the FDI, host country determinants of FDI and transnational corporation (TNC). Second part of the study contains history of developing foreign direct investment and regional distribution of FDI, FDI that affecting economic growth, the impact to growing factors of the FDI, and FDI literature. In the last part of the study, basicly six models are developed and tested. Test results show that FDI and economic growth are positively related to FDI.