The Impact of the Technological Capability of a Host Country on Inward FDI in OECD Countries: The Moderating Roles of Institutional Quality

This empirical study explores the impacts of technological capability on inward foreign direct investment (FDI) with the moderations of institutional quality. We extend the existing literature by contributing the dynamic links between technology trade and institutional quality by using the panel dat...

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Main Authors:	Seunghyun Kim, Byungchul Choi
Format:	Article
Language:	English
Published:	MDPI AG 2020-11-01
Series:	Sustainability
Subjects:	foreign direct investment technological capability of a host country institutional quality
Online Access:	https://www.mdpi.com/2071-1050/12/22/9711

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spelling	doaj-db57134388bc47eea37676317bb495cb2020-11-25T04:11:54ZengMDPI AGSustainability2071-10502020-11-01129711971110.3390/su12229711The Impact of the Technological Capability of a Host Country on Inward FDI in OECD Countries: The Moderating Roles of Institutional QualitySeunghyun Kim0Byungchul Choi1Science and Technology Policy Institute, Sejong 30147, KoreaCollege of Business, Hankuk University of Foreign Studies, Seoul Campus, Seoul 02450, KoreaThis empirical study explores the impacts of technological capability on inward foreign direct investment (FDI) with the moderations of institutional quality. We extend the existing literature by contributing the dynamic links between technology trade and institutional quality by using the panel data of 35 Organization for Economic Cooperation and Development (OECD) countries between 2000 and 2015. Based on fixed-effects regression, our results show that there is a U-shape relationship between the net technological capability of a host country and inward FDI. In addition, the institutional quality of a host country, government size and regulation have positive moderations, whereas sound money accessibility and legal system and property protection have negative moderations on the main U-shape relationship. Our study contributes to the literature on the determinants of inward FDI in the context of technological capabilities and institutional quality.https://www.mdpi.com/2071-1050/12/22/9711foreign direct investmenttechnological capability of a host countryinstitutional quality
collection	DOAJ
language	English
format	Article
sources	DOAJ
author	Seunghyun Kim Byungchul Choi
spellingShingle	Seunghyun Kim Byungchul Choi The Impact of the Technological Capability of a Host Country on Inward FDI in OECD Countries: The Moderating Roles of Institutional Quality Sustainability foreign direct investment technological capability of a host country institutional quality
author_facet	Seunghyun Kim Byungchul Choi
author_sort	Seunghyun Kim
title	The Impact of the Technological Capability of a Host Country on Inward FDI in OECD Countries: The Moderating Roles of Institutional Quality
title_short	The Impact of the Technological Capability of a Host Country on Inward FDI in OECD Countries: The Moderating Roles of Institutional Quality
title_full	The Impact of the Technological Capability of a Host Country on Inward FDI in OECD Countries: The Moderating Roles of Institutional Quality
title_fullStr	The Impact of the Technological Capability of a Host Country on Inward FDI in OECD Countries: The Moderating Roles of Institutional Quality
title_full_unstemmed	The Impact of the Technological Capability of a Host Country on Inward FDI in OECD Countries: The Moderating Roles of Institutional Quality
title_sort	impact of the technological capability of a host country on inward fdi in oecd countries: the moderating roles of institutional quality
publisher	MDPI AG
series	Sustainability
issn	2071-1050
publishDate	2020-11-01
description	This empirical study explores the impacts of technological capability on inward foreign direct investment (FDI) with the moderations of institutional quality. We extend the existing literature by contributing the dynamic links between technology trade and institutional quality by using the panel data of 35 Organization for Economic Cooperation and Development (OECD) countries between 2000 and 2015. Based on fixed-effects regression, our results show that there is a U-shape relationship between the net technological capability of a host country and inward FDI. In addition, the institutional quality of a host country, government size and regulation have positive moderations, whereas sound money accessibility and legal system and property protection have negative moderations on the main U-shape relationship. Our study contributes to the literature on the determinants of inward FDI in the context of technological capabilities and institutional quality.
topic	foreign direct investment technological capability of a host country institutional quality
url	https://www.mdpi.com/2071-1050/12/22/9711
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The Impact of the Technological Capability of a Host Country on Inward FDI in OECD Countries: The Moderating Roles of Institutional Quality

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