Previously reported effects of institutional quality and political risks on foreign direct investment (FDI) are mixed and, therefore, difficult to interpret. We present empirical evidence suggesting a relatively clear, statistically robust, and intuitive characterization. Institutional factors...

1. Introduction and summary -- 2. The theory of preferential trading arrangements : an overview -- 3. Measuring the effects of economic integration -- 4. Effect of EC-92 and NAFTA on developing-country trade flows -- 5. Effects of EC-92 and NAFTA on DFI in Asia -- 6. ASEAN economic cooperation :...

Drawing on recently completed firm-level surveys in Bangladesh, Brazil, China, Honduras, India, Nicaragua, Pakistan, and Peru, Dollar, Hallward-Driemeier, and Mengistae investigate the relationship between investment climate and international integration. These standardized surveys of large,...

Drawing on recently completed firm-level surveys in Bangladesh, Brazil, China, Honduras, India, Nicaragua, Pakistan, and Peru, this paper investigates the relationship between investment climate and international integration. These standardized surveys of large, random samples of firms in common...