APPENDIX TABLE 1:

APPENDIX

TABLE 1: VARIABLES AND SOURCES

TABLE 2: COMPOSITION OF THE FORMAL INSTITUIONS PERSPECTIVE

TABLE 3: SUMMARY STATISTICS AND CORRELATION MATRIX

TABLE 4: LINEAR REGRESSION RESULTS USING FDI/FI AS DEPENDENT

VARIABLE

TABLE 5: TOBIT REGRESSION RESULTS USING FDI/FI AS DEPENDENT

VARIABLE

TABLE 6: LINEAR REGRESSION RESULTS USING FDI/GDP AS DEPENDENT

VARIABLE

TABLE 7: TOBIT REGRESSION RESULTS USING FDI/GDP AS DEPENDENT

VARIABLE

TABLE 8: LINEAR REGRESSION RESULTS FOR THE VARIABLES OF THE FORMAL

INSTITUTIONS PERSPECTIVE USING FDI/GDP AS DEPENDENT

VARIABLE

1

TABLE 1 Variables, definitions and data-sources

Variable Definition Source

FI

Cumulative total foreign investment (direct International Financial Statistics investment + portfolio investment) (millions of (IMF, 2006)

US$)

FDIFI

FDI as % of total foreign investment World Investment Report (WIR,

2006)

FDI/GDP

FDI as share of gross domestic product World Bank, 2006

LLSV_NEW

Anti-director index representing the shareholder La Porta, 1998 protection perspective

ADMIN_OPEN

Index of a country’s administrative openness Index of Economic Freedom (IEF), 2006

CORP_TAX

Level of corporate taxation World Tax Database, 2006

FORMAL

Conventional perspective Average of CORP_TAX, ADMIN_OPEN, LLSV_NEW

GEI

Governance environment index

Li and Filer, 2004

INFORM

Cultural index for informal institutions Tabellini, 2005

2

TABLE 2: Composition of the formal institutions perspective

COUNTRY LLSV_NEW CORP_TAX ADMIN_OPEN CONV_P Finland Norway Sweden Denmark Canada Netherlands Iceland Australia Ireland United Kingdom United States Germany Austria Japan Belgium Czech Republic Poland S. Korea South Africa Bulgaria Croatia India Argentina Peru Ghana Romania Mexico Brazil Philippines Venezuela Spain France Taiwan Portugal Chile Hungary Italy Slovenia Uruguay Turkey Ukraine Nigeria Colombia Bangladesh Russia Pakistan China 3 4 3 2 5 2 . 4 4 5 5 3 3 5 2 . . 4 5 . . 5 4 4 . . 2 5 3 1 4 4 3 4 5 . 5 . 2 2 . 3 5 . . 5 . 29 28 28 30 38 35 18 30 16 30 35 25 34 30 39 31 28 27 30 20 20 35 35 27 33 25 35 15 32 34 35 33 25 30 16 18 36 25 30 30 30 30 35 40 24 45 30 76,5 70,1 72,6 77,6 78,7 77,1 77,1 82,4 81,3 81,6 82 73,5 71,3 73,6 74,5 69,7 58,8 68,6 64,1 62,2 55,3 55,6 57,5 62,1 58,1 61,3 65,8 60,9 57,4 47,7 70,9 66,1 71,1 66,7 78,3 66,2 63,4 63,6 69,3 59,3 53,3 52,6 60,5 47,8 54 58,2 54 62 65 59 54 71 48 87 75 89 83 77 64 52 75 41 55* 44* 65 66 63* 53* 52 46 59 35* 53* 37 79 40 12 58 56 61 60 95 72* 58 56* 46 36 33* 38 57 8* 44* 43 34* * = missing values for the LSSV_NEW

3

TABLE 3: SUMMARY STATISTICS AND CORRELATION MATRIX

4

TABLE 4: LINEAR REGRESSION RESULTS USING FDI/FI AS DEPENDENT

VARIABLE

The tolerance values of the VIF test are in parentheses.

** p<0.01. * p<0.05.

+

p<0.1 All are two-tail tests.

5

TABLE 5: TOBIT REGRESSION RESULTS USING FDI/FI AS DEPENDENT

VARIABLE

The value of the z-statistic is in parentheses.

** p<0.01. * p<0.05.

+

p<0.1 All are two-tail tests.

6

TABLE 6: LINEAR REGRESSION RESULTS USING FDI/GDP AS DEPENDENT

VARIABLE

7

TABLE 7: TOBIT REGRESSION RESULTS USING FDI/GDP AS DEPENDENT

VARIABLE

8

TABLE 8: LINEAR REGRESSION RESULTS FOR THE VARIABLES OF THE

FORMAL INSTITUTIONS PERSPECTIVE USING FDI/GDP AS DEPENDENT

VARIABLE

9

TABLE 9: EXPERIMENTS COMPOSITION FORMAL VARIABLE