Abstract
AbstractThe main contribution of this study to international business research is to integrate state fragility as a multidimensional factor determining FDI inflows. After considering 17 countries in the MENA region for the period between 2002 and 2018, our results reveal that state fragility has a negative impact on inward FDI. However, this negative relationship turns out to be moderated by natural resource endowment and democratic governance. While lower levels of democratic governance strengthen the negative impact of state fragility on FDI, it appears that, contrary to our expectations, higher levels of natural resource endowment accentuate this negative impact, thus providing evidence for the resource curse phenomenon.
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Schedule a callMore From: Canadian Journal of Administrative Sciences / Revue Canadienne des Sciences de l'Administration
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