The Relationship between Institutional Quality and Foreign Direct Investments: An Application on New Fragile Five Countries

Fergül Özgün

Makale detayları

The Relationship between Institutional Quality and Foreign Direct Investments: An Application on New Fragile Five Countries

Yazarlar:

Fergül Özgün

Yayıncı:

Selcuk University

Ana Başlıklar:

Kalkınma Ekonomisi - Makro

Dergi:

Selçuk Üniversitesi Sosyal Bilimler Enstitüsü Dergisi Issue 53, pp.233-257

Belge Tipi:

Makale

Yayın Tarihi:

4/2024

Belge Dili:

Türkçe

Document ID (Org No.):

2001316792

pISSN:

2667-4750

Anahtar kelimeler:

Özet:

 Institutional quality is an important factor that affects the economic and social indicators of countries. The need for strong institutions and the importance of institutional quality are also emphasized in sustainable development goals. The New Fragile Five countries are countries that are considered attractive for investment because of their growth potential. However, some structural problems limit their growth potential. Dependency on foreign investment is one of the main problems faced by these countries. Therefore, these countries should increase direct foreign investments, which are long-term investments, instead of indirect investments. Thus, their fragile structure may be reduced. In this study, the answer to the question of whether improving institutional quality is effective in increasing FDI was sought. The relationship between FDI and institutional quality was examined in the New Fragile Five countries. The World Bank Governance Index data were used to represent institutional quality. The panel ARDL method was applied with data from 2002 to 2022. According to the analysis, a significant and strong long-term relationship between foreign direct investments and institutional quality. In the long term, the effect of the variables of regulatory quality, rule of law, voice and accountability, political stability, and absence of violenceterrorism is positive. Government effectiveness and the control of corruption variables have a negative effect on foreign direct investments in the long term. To increase foreign direct investment, the New Fragile Five countries must improve institutional quality.

 Institutional quality is an important factor that affects the economic and social indicators of countries. The need for strong institutions and the importance of institutional quality are also emphasized in sustainable development goals. The New Fragile Five countries are countries that are considered attractive for investment because of their growth potential. However, some structural problems limit their growth potential. Dependency on foreign investment is one of the main problems faced by these countries. Therefore, these countries should increase direct foreign investments, which are long-term investments, instead of indirect investments. Thus, their fragile structure may be reduced. In this study, the answer to the question of whether improving institutional quality is effective in increasing FDI was sought. The relationship between FDI and institutional quality was examined in the New Fragile Five countries. The World Bank Governance Index data were used to represent institutional quality. The panel ARDL method was applied with data from 2002 to 2022. According to the analysis, a significant and strong long-term relationship between foreign direct investments and institutional quality. In the long term, the effect of the variables of regulatory quality, rule of law, voice and accountability, political stability, and absence of violenceterrorism is positive. Government effectiveness and the control of corruption variables have a negative effect on foreign direct investments in the long term. To increase foreign direct investment, the New Fragile Five countries must improve institutional quality.

 Institutional quality is an important factor that affects the economic and social indicators of countries. The need for strong institutions and the importance of institutional quality are also emphasized in sustainable development goals. The New Fragile Five countries are countries that are considered attractive for investment because of their growth potential. However, some structural problems limit their growth potential. Dependency on foreign investment is one of the main problems faced by these countries. Therefore, these countries should increase direct foreign investments, which are long-term investments, instead of indirect investments. Thus, their fragile structure may be reduced. In this study, the answer to the question of whether improving institutional quality is effective in increasing FDI was sought. The relationship between FDI and institutional quality was examined in the New Fragile Five countries. The World Bank Governance Index data were used to represent institutional quality. The panel ARDL method was applied with data from 2002 to 2022. According to the analysis, a significant and strong long-term relationship between foreign direct investments and institutional quality. In the long term, the effect of the variables of regulatory quality, rule of law, voice and accountability, political stability, and absence of violenceterrorism is positive. Government effectiveness and the control of corruption variables have a negative effect on foreign direct investments in the long term. To increase foreign direct investment, the New Fragile Five countries must improve institutional quality.

 Kurumsal kalite, ülkelerin ekonomik ve sosyal göstergelerini etkileyen önemli faktörlerden biridir. Güçlü kurumların gerekliliği ve kurumsal kalitenin önemi, sürdürülebilir kalkınma hedeflerinde de vurgulanmıştır. Yeni Kırılgan Beşli ülkeleri, büyüme potansiyelleri ile yatırım açısından cazip görülen ülkelerdir. Ancak bazı yapısal problemleri, büyüme potansiyellerini sınırlandırmaktadır. Yabancı yatırımlara bağımlılık, bu ülkelerin temel problemlerinden biri olduğu için dolaylı yatırım yerine uzun vadeli bir yatırım türü olan doğrudan yabancı yatırımları artırmayı hedeflemeleri, kırılgan yapının azaltılmasını sağlayabilir. Bu çalışmada, kurumsal kalitenin iyileştirilmesinin doğrudan yabancı yatırımların artırılmasında etkili olup olmadığı sorusuna cevap aranmış ve Yeni Kırılgan Beşli ülkelerinde doğrudan yabancı yatırımlar ile kurumsal kalite arasındaki ilişki incelenmiştir. Kurumsal kaliteyi temsilen Dünya Bankası Yönetişim Endeksi verileri kullanılmıştır. 2002-2022 yılları arasındaki veriler kapsamında panel ARDL yöntemi uygulanmıştır. Analiz sonuçlarına göre doğrudan yabancı yatırımlar ile kurumsal kalite arasında uzun dönemde anlamlı bir ilişki mevcuttur. Uzun dönemde düzenleyicilik kalitesi, hukukun üstünlüğü, ifade özgürlüğü ve hesap verebilirlik, siyasi istikrarın sağlanması ve şiddetin olmaması değişkenlerinin etkisi pozitiftir. Hükümet etkinliği ve yolsuzluğun kontrolü değişkenlerinin ise doğrudan yabancı yatırımları uzun dönemde negatif yönde etkilediği tespit edilmiştir. Doğrudan yabancı yatırımların artması için Yeni Kırılgan Beşli ülkelerinin kurumsal kalitenin iyileştirilmesine daha fazla önem vermeleri gerektiği ifade edilebilir.

Makale detayları

The Relationship between Institutional Quality and Foreign Direct Investments: An Application on New Fragile Five Countries

Yazarlar:

Fergül Özgün

Yayıncı:

Selcuk University

Ana Başlıklar:

Kalkınma Ekonomisi - Makro

Dergi:

Selçuk Üniversitesi Sosyal Bilimler Enstitüsü Dergisi Issue 53, pp.233-257

Belge Tipi:

Makale

Yayın Tarihi:

4/2024

Belge Dili:

Türkçe

Document ID (Org No.):

2001316792

pISSN:

2667-4750

Sustainable Development

Institutional Quality

Governance Indicators

New Fragile Five

Foreign Direct InvestmentSürdürülebilir Kalkınma

Kurumsal Kalite

Yönetişim Göstergeleri

Yeni Kırılgan Beşli

Doğrudan Yabancı Yatırım

Sayı

Makale detayları

Yazarlar: Fergül Özgün

Yayıncı: Selcuk University

Ana Başlıklar: Kalkınma Ekonomisi - Makro

Dergi: Selçuk Üniversitesi Sosyal Bilimler Enstitüsü Dergisi Issue 53, pp.233-257

Belge Tipi: Makale

Yayın Tarihi: 4/2024

Belge Dili: Türkçe

Document ID (Org No.): 2001316792

pISSN: 2667-4750

Sayı

Yazarlar:

Fergül Özgün

Yayıncı:

Selcuk University

Ana Başlıklar:

Kalkınma Ekonomisi - Makro

Dergi:

Selçuk Üniversitesi Sosyal Bilimler Enstitüsü Dergisi Issue 53, pp.233-257

Belge Tipi:

Makale

Yayın Tarihi:

4/2024

Belge Dili:

Türkçe

Document ID (Org No.):

2001316792

pISSN:

2667-4750