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...
Main Authors: | , |
---|---|
Format: | Article |
Language: | English |
Published: |
MDPI AG
2020-11-01
|
Series: | Sustainability |
Subjects: | |
Online Access: | https://www.mdpi.com/2071-1050/12/22/9711 |
id |
doaj-db57134388bc47eea37676317bb495cb |
---|---|
record_format |
Article |
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 |
work_keys_str_mv |
AT seunghyunkim theimpactofthetechnologicalcapabilityofahostcountryoninwardfdiinoecdcountriesthemoderatingrolesofinstitutionalquality AT byungchulchoi theimpactofthetechnologicalcapabilityofahostcountryoninwardfdiinoecdcountriesthemoderatingrolesofinstitutionalquality AT seunghyunkim impactofthetechnologicalcapabilityofahostcountryoninwardfdiinoecdcountriesthemoderatingrolesofinstitutionalquality AT byungchulchoi impactofthetechnologicalcapabilityofahostcountryoninwardfdiinoecdcountriesthemoderatingrolesofinstitutionalquality |
_version_ |
1724416662622437376 |