Robustness check – adding more control variables accounting for institutional quality
| (1) | (2) | (3) | (4) | (5) | (6) | |
|---|---|---|---|---|---|---|
| Variables | FDI inflow | Greenfield | Merger | FDI inflow | Greenfield | Merger |
| Sanction | -0.407*** | -0.173*** | -0.524*** | |||
| (0.189) | (0.225) | (0.734) | ||||
| Arms | 0.859* | 0.172 | 2.771 | |||
| (0.286) | (0.774) | (0.983) | ||||
| Military | -0.294*** | -0.263 | -4.164*** | |||
| (0.263) | (0.403) | (1.393) | ||||
| Trade | -0.256*** | -0.165 | -0.062*** | |||
| (0.178) | (0.307) | (0.416) | ||||
| Financial | 0.186 | 0.148 | 0.111 | |||
| (0.157) | (0.273) | (0.531) | ||||
| Travel | 0.436 | 0.011 | -0.839 | |||
| (0.183) | (0.452) | (0.641) | ||||
| Other | 0.747 | 0.026 | 0.660 | |||
| (0.277) | (0.285) | (0.621) | ||||
| Unemployment_ratio | -5.270** | -6.922** | -13.062 | -5.617** | -6.765** | -11.103 |
| (2.309) | (2.814) | (8.316) | (2.364) | (3.106) | (9.030) | |
| Bank_branch | 0.090 | -0.080 | 0.984 | 0.025 | -0.376 | -2.364 |
| (1.633) | (2.096) | (4.236) | (1.645) | (2.167) | (4.097) | |
| Openess | -0.232 | 2.000*** | -1.256 | -0.120 | 1.942*** | -1.517 |
| (0.521) | (0.687) | (1.271) | (0.521) | (0.702) | (1.295) | |
| Government_size | 5.790 | 6.408 | -5.444 | 5.441 | 6.385 | -4.484 |
| (4.008) | (4.164) | (11.268) | (4.008) | (4.203) | (11.287) | |
| Population_density | -0.312 | 0.536 | 1.945 | -0.294 | 0.535 | 1.915 |
| (0.369) | (0.666) | (1.751) | (0.367) | (0.677) | (1.798) | |
| Regulatory Quality | 0.023* | 0.006 | 0.073** | 0.018* | 0.006 | 0.084 |
| (0.019) | (0.019) | (0.055) | (0.019) | (0.019) | (0.056) | |
| Rule of Law | 0.001** | 0.009 | 0.027* | 0.026* | 0.010 | 0.044 |
| (0.014) | (0.016) | (0.049) | (0.014) | (0.016) | (0.051) | |
| Government Effectiveness | 0.019** | 0.016** | 0.037 | 0.019* | 0.017 | 0.030 |
| (0.012) | (0.012) | (0.034) | (0.012) | (0.013) | (0.035) | |
| Corruption | -0.118 | 0.523 | -0.111 | -0.490 | 0.517 | -0.165 |
| (1.010) | (0.323) | (0.130) | (1.000) | (0.338) | (0.130) | |
| Political stability | 0.048* | -0.016 | 0.009 | 0.058* | -0.013 | 0.009 |
| (0.016) | (0.005) | (0.002) | (0.015) | (0.005) | (0.002) | |
| Constant | 8.533*** | 3.995* | 5.669 | 8.280*** | 4.023* | 6.146 |
| (1.594) | (2.182) | (6.200) | (1.599) | (2.214) | (6.272) | |
| Observations | 1,357 | 1,399 | 1,040 | 1,357 | 1,399 | 1,040 |
| R-squared | 0.914 | 0.883 | 0.810 | 0.917 | 0.883 | 0.818 |
| Country FEs | YES | YES | YES | YES | YES | YES |
| Year FEs | YES | YES | YES | YES | YES | YES |
| (1) | (2) | (3) | (4) | (5) | (6) | |
|---|---|---|---|---|---|---|
| Variables | FDI inflow | Greenfield | Merger | FDI inflow | Greenfield | Merger |
| -0.407*** | -0.173*** | -0.524*** | ||||
| (0.189) | (0.225) | (0.734) | ||||
| 0.859* | 0.172 | 2.771 | ||||
| (0.286) | (0.774) | (0.983) | ||||
| -0.294*** | -0.263 | -4.164*** | ||||
| (0.263) | (0.403) | (1.393) | ||||
| -0.256*** | -0.165 | -0.062*** | ||||
| (0.178) | (0.307) | (0.416) | ||||
| 0.186 | 0.148 | 0.111 | ||||
| (0.157) | (0.273) | (0.531) | ||||
| 0.436 | 0.011 | -0.839 | ||||
| (0.183) | (0.452) | (0.641) | ||||
| 0.747 | 0.026 | 0.660 | ||||
| (0.277) | (0.285) | (0.621) | ||||
| -5.270** | -6.922** | -13.062 | -5.617** | -6.765** | -11.103 | |
| (2.309) | (2.814) | (8.316) | (2.364) | (3.106) | (9.030) | |
| 0.090 | -0.080 | 0.984 | 0.025 | -0.376 | -2.364 | |
| (1.633) | (2.096) | (4.236) | (1.645) | (2.167) | (4.097) | |
| -0.232 | 2.000*** | -1.256 | -0.120 | 1.942*** | -1.517 | |
| (0.521) | (0.687) | (1.271) | (0.521) | (0.702) | (1.295) | |
| 5.790 | 6.408 | -5.444 | 5.441 | 6.385 | -4.484 | |
| (4.008) | (4.164) | (11.268) | (4.008) | (4.203) | (11.287) | |
| -0.312 | 0.536 | 1.945 | -0.294 | 0.535 | 1.915 | |
| (0.369) | (0.666) | (1.751) | (0.367) | (0.677) | (1.798) | |
| 0.023* | 0.006 | 0.073** | 0.018* | 0.006 | 0.084 | |
| (0.019) | (0.019) | (0.055) | (0.019) | (0.019) | (0.056) | |
| 0.001** | 0.009 | 0.027* | 0.026* | 0.010 | 0.044 | |
| (0.014) | (0.016) | (0.049) | (0.014) | (0.016) | (0.051) | |
| 0.019** | 0.016** | 0.037 | 0.019* | 0.017 | 0.030 | |
| (0.012) | (0.012) | (0.034) | (0.012) | (0.013) | (0.035) | |
| -0.118 | 0.523 | -0.111 | -0.490 | 0.517 | -0.165 | |
| (1.010) | (0.323) | (0.130) | (1.000) | (0.338) | (0.130) | |
| 0.048* | -0.016 | 0.009 | 0.058* | -0.013 | 0.009 | |
| (0.016) | (0.005) | (0.002) | (0.015) | (0.005) | (0.002) | |
| Constant | 8.533*** | 3.995* | 5.669 | 8.280*** | 4.023* | 6.146 |
| (1.594) | (2.182) | (6.200) | (1.599) | (2.214) | (6.272) | |
| Observations | 1,357 | 1,399 | 1,040 | 1,357 | 1,399 | 1,040 |
| 0.914 | 0.883 | 0.810 | 0.917 | 0.883 | 0.818 | |
| Country FEs | YES | YES | YES | YES | YES | YES |
| Year FEs | YES | YES | YES | YES | YES | YES |
Note(s): Robust standard errors in parentheses
***p < 0.01, **p < 0.05, *p < 0.1
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