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      Foreign Direct Investment in oil-abundant countries: The role of institutions

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          Abstract

          The present work reassesses the impact of good governance and democracy on Foreign Direct Investment (FDI) in oil-abundant countries. To this end, we estimate the effect of host countries’ institutions on greenfield FDI, using a gravity equation for a dataset that covers 182 countries during 2003-2012. Our findings confirm that compliance to rule of law, lack of corruption, political stability and democracy could boost new FDI links through the extensive margin. Our results could not rule out the “oil curse”, meaning that oil producers attract fewer new greenfield projects than similar countries without oil. Unlike other studies, we show that the impact of institutions is not necessarily undermined by the presence of natural resources.

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          Initial conditions and moment restrictions in dynamic panel data models

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            The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity

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              Gravity with Gravitas: A Solution to the Border Puzzle

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                Author and article information

                Contributors
                Role: Data curationRole: Formal analysisRole: InvestigationRole: Writing – original draftRole: Writing – review & editing
                Role: ConceptualizationRole: Funding acquisitionRole: InvestigationRole: Writing – original draftRole: Writing – review & editing
                Role: ConceptualizationRole: Data curationRole: Formal analysisRole: Funding acquisitionRole: InvestigationRole: Writing – review & editing
                Role: Editor
                Journal
                PLoS One
                PLoS ONE
                plos
                plosone
                PLoS ONE
                Public Library of Science (San Francisco, CA USA )
                1932-6203
                2019
                23 April 2019
                : 14
                : 4
                : e0215650
                Affiliations
                [1 ] Department of Economic Theory and History, University of Granada, Granada, Spain
                [2 ] Department of Economic Analysis and Political Economy, University of Seville, Seville, Spain
                [3 ] Department of Economic Structure, University of Valencia, Valencia, Spain
                Universidad de Castilla-La Mancha, SPAIN
                Author notes

                Competing Interests: The authors have declared that no competing interests exist.

                Author information
                http://orcid.org/0000-0002-8859-0775
                Article
                PONE-D-18-29063
                10.1371/journal.pone.0215650
                6478325
                31013300
                8f6d1aa0-6b10-4979-b960-a4819d4dd3db
                © 2019 Carril-Caccia et al

                This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

                History
                : 6 October 2018
                : 6 April 2019
                Page count
                Figures: 0, Tables: 14, Pages: 23
                Funding
                Funded by: funder-id http://dx.doi.org/10.13039/501100003359, Generalitat Valenciana;
                Award ID: GV/2017/052
                Award Recipient :
                Funded by: Forum euroméditerranéen des instituts de sciences économiques
                Award ID: FEM41-07
                Award Recipient :
                Funded by: funder-id http://dx.doi.org/10.13039/501100002878, Consejería de Economía, Innovación, Ciencia y Empleo, Junta de Andalucía;
                Award ID: SEJ 340
                Award Recipient :
                Funded by: funder-id http://dx.doi.org/10.13039/501100010198, Ministerio de Economía, Industria y Competitividad, Gobierno de España;
                Award ID: ECO2015-68057-R
                Award Recipient :
                This work was supported by: Consejería de Economía, Innovación, Ciencia y Empleo, Junta de Andalucia [SEJ 340], https://juntadeandalucia.es/ (JM, FC); Forum Euromediterraneen des Instituts de Sciences Economiques [FEM41-07], www.femise.org/en (JM, JP, FC); Ministerio de Economía, Industria y Competitividad, Gobierno de España [ECO2015-68057-R]; www.mineco.gob.es/ (JP); and Generalitat Valenciana [GV/2017/052], www.gva.es (JP, FC). The funders had no role in study design, data collection and analysis, decision to publish, or preparation of the manuscript.
                Categories
                Research Article
                Custom metadata
                The dataset for this study can be found here: http://www.uv.es/jorpaso2/datsets/FDI%20in%20oil-abundant%20countries%20datashare.dta. One variable in our dataset (FDI) cannot be shared publicly because we are not the owners and we cannot legally distribute. This variable is constructed with data are available from the FDIMarkets (Financial Times ltd.) via https://www.fdimarkets.com/ for researchers who meet the criteria for access to confidential data.

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