YÖNETİŞİM GÖSTERGELERİNİN DOĞRUDAN YABANCI YATIRIMLARA ETKİSİ: SEÇİLMİŞ ÜLKE EKONOMİLERİ ÜZERİNE BİR UYGULAMA
THE EFFECT OF GOVERNANCE INDICATORS ON FOREIGN DIRECT INVESTMENT: AN APPLICATION ON SELECTED COUNTRY ECONOMIES

Summary/Abstract: The relationship between foreign direct investment (FDI) and governance is complex and multifaceted. A country's governance infrastructure, including its political, institutional and legal environment, significantly affects both the inflow and outflow of FDI. In this study, the relationship between FDI and governance indicators of the top 20 countries receiving the highest FDI in 2022 is analyzed. For this purpose, the relationship between the variables is tested by panel data analysis using annual data sets for the period 2002-2022. FDI is used as the dependent variable and six indicators of World Bank governance indicators and GDP variables are used as independent variables. According to the empirical results obtained from the study, the variables of freedom of expressionaccountability, government effectiveness and control of corruption move inversely with FDI in the countries analyzed. Political stability and absence of violence/terrorism, regulatory quality, rule of law and GDP used as control variables move in the same direction. These results support the view that contrary to the traditional view that good governance is necessary to attract FDI, governance indicators as a whole do not have a positive relationship with FDI and vice versa.

• Details
• Contents