alexa The Role of Institutions and Good Governance for Attracting Foreign Direct Investments: Evidence from Southeast Europe
ISSN: 2151-6219

Business and Economics Journal
Open Access

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Research Article

The Role of Institutions and Good Governance for Attracting Foreign Direct Investments: Evidence from Southeast Europe

Valbona Zeneli*

Professor of national security studies, George C. Marshall European Center for Security Studies, Garmisch, Germany

*Corresponding Author:
Valbona Zeneli
Professor of national security studies
George C. Marshall European Center for Security Studies, Garmisch, Germany
Tel: 0049 88217502633
E-mail: [email protected]

Received date: February 13, 2014; Accepted date: March 24, 2014; Published date: March 30, 2014

Citation: Valbona Zeneli (2014) The Role of Institutions and Good Governance for Attracting Foreign Direct Investments: Evidence from Southeast Europe. Bus Eco J 5:92. doi: 10.4172/2151-6219.100092

Copyright: © 2014 Zeneli V. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

Abstract

Institutional infrastructure and governance play a critical role in attracting foreign investments. This is especially true in transition countries. This paper examines the role of Foreign Direct Investment (FDI) in South Eastern European Countries during the 1992-2010 timeframe. Using GMM estimations applied to dynamic panel data, visibility into regional foreign investments highlight the role of institutions as well as the distinctions between total FDI and Non-Privatization related FDI. The empirical data point to the importance of the quality of the institutions and the role of the privatization process in these countries.

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