How does religion bias the allocation of Foreign Direct Investment? The role of institutions

摘要: Abstract We construct a gravity model of worldwide foreign direct investment stock (FDI) in order to study the effect religion on FDI allocation. establish empirically that both bilateral religious similarity and diversity foster at country pair level. These apparently contradicting results confirm an empirical puzzle has already emerged literature, particularly case trade goods. investigate whether answer this could lie fact these two variables play for different types countries, depending level efficiency their institutions.