Journal of Legal, Ethical and Regulatory Issues (Print ISSN: 1544-0036; Online ISSN: 1544-0044)


Foreign Direct Investment and Good Local Governance: The issue of Political Will and Commitment

Author(s): Nguyen Thanh Hoang

Many studies have identified the factors affecting the attraction of Foreign Direct Investment (FDI) from the perspective of governance. This study looks for evidence on the impact of public governance on existing foreign investment in host countries. The study collected the assessment of 102 managers of FDI enterprises on the extent of public governance impact on their operations in the locality. The results show that ten out of twelve criteria in terms of macro environment and institutions as well as a tectonic local government have a positive impact. In which, the political will and commitment are considered as a catalyst; while, corruption has no significant effect. This study provides a new perspective on the relationship between FDI and good governance which is executed by a tectonic local government. Only the government has the capacity and power to create a transparent and fair ecosystem for all types of businesses to enhance their contribution to the local socio-economic development.

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