Direct and indirect influence of national culture on foreign direct investment
Journal article
Izadi, Selma, Rashid, Mamunur and Izadi, Parviz 2023. Direct and indirect influence of national culture on foreign direct investment. Research in International Business and Finance. 66, p. 102037. https://doi.org/10.1016/j.ribaf.2023.102037
| Authors | Izadi, Selma, Rashid, Mamunur and Izadi, Parviz |
|---|---|
| Abstract | This study investigates whether extending cultural dimensions leads to different conclusions about foreign direct investment (FDI) inflows. We consider data from 33 developing and developed countries from 2001 to 2017. Several proxies for traditional FDI determinants are considered alongside proxies for financial channels and six-dimensional (6-D) measures of Hofstede’s national culture. The study employs a host of tests based on ordinary least squares, random effects, two-stage GMM, panel vector autoregressive, and estimated generalized least squares tests. Our results indicate the strong influences of economic growth, financial and trade openness, and three cultural variables on FDI inflow in the selected countries. Concerning culture, nations with lower “masculinity” and higher “individualism” and “indulgence” scores attract more FDIs. After controlling for economic growth endogeneity and employing cultural factors as instrumental variables, we conclude that culture affects FDI inflows indirectly through economic growth. |
| Keywords | FDI inflows; Financial channel; Hofstede culture; Instrumental variable estimation |
| Year | 2023 |
| Journal | Research in International Business and Finance |
| Journal citation | 66, p. 102037 |
| Publisher | Elsevier |
| ISSN | 02755319 |
| Digital Object Identifier (DOI) | https://doi.org/10.1016/j.ribaf.2023.102037 |
| Official URL | https://www.sciencedirect.com/science/article/abs/pii/S0275531923001630?via%3Dihub |
| Publication dates | |
| Online | 19 Jul 2023 |
| Publication process dates | |
| Deposited | 26 Jul 2023 |
| Accepted | 15 Jul 2023 |
| Accepted author manuscript | License |
| Output status | Published |
Permalink -
https://repository.canterbury.ac.uk/item/9527x/direct-and-indirect-influence-of-national-culture-on-foreign-direct-investment
Restricted files
Accepted author manuscript
Under embargo until 19 Jul 2026
102
total views0
total downloads0
views this month0
downloads this month
Export as
Related outputs
The resilience of ethical assets against different uncertainty shocks
Hasan, Md Bokhtiar, Hassan, M Kabir, Rashid, Mamunur, Akter, Tanzila and Rafia, Humaira Tahsin 2024. The resilience of ethical assets against different uncertainty shocks. Heliyon. 10 (24), p. e40980. https://doi.org/10.1016/j.heliyon.2024.e40980Creating a religious identity and impression management by Islamic banks
Maali, B.M., Hassan, M. and Rashid, M. 2024. Creating a religious identity and impression management by Islamic banks. International Journal of Islamic and Middle Eastern Finance and Management. 17 (4), pp. 693-710. https://doi.org/10.1108/IMEFM-05-2024-0240Cushion hypothesis and credit risk: Islamic versus conventional banks from the MENA region.
Abdeljawad, I., Rashid, Mamunur, Abu Alia, Muiz, Qushtom, R., Irshaid, Mahmoud and Sahyouni, Ahmad 2024. Cushion hypothesis and credit risk: Islamic versus conventional banks from the MENA region. PLoS ONE. 19 (7), p. e0306901. https://doi.org/10.1371/journal.pone.0306901