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The Institutional-Economic Nexus in Driving Greenfield FDI to European Countries

Ľubica Štiblárová

Prague Economic Papers2026https://doi.org/10.18267/j.pep.903article
ABDC C
Weight
0.50

What the paper says

While theoretical perspectives often emphasize the role of high-quality institutions in attracting foreign investors, empirical findings remain rather mixed. This study advances existing research by exploring the interplay between quality of institutions and economic development in driving greenfield foreign direct investment (FDI) in European countries. The results do not suggest that better institutions alone directly help attract FDI in the selected European sample from 2003-2022. However, in more economically developed host countries, institutional quality plays a significant role, whether measured by real GDP per capita or GNI per capita. Further analysis reveals that both legal and political components of institutional quality have a beneficial conditional effect in more developed countries. Conversely, this finding does not hold uniformly across all FDI; it applies to FDI in the services sector but not in manufacturing, which may be explained by efficiency-seeking motives.

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https://doi.org/https://doi.org/10.18267/j.pep.903

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@article{ľubica2026,
  title        = {{The Institutional-Economic Nexus in Driving Greenfield FDI to European Countries}},
  author       = {Ľubica Štiblárová},
  journal      = {Prague Economic Papers},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.18267/j.pep.903},
}

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The Institutional-Economic Nexus in Driving Greenfield FDI to European Countries

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.