Empirical studies on the role of institutional factors in the distribution of cross-border venture capital

With data from 33 countries and regions, the paper examines the impacts of eight institutional factors under three categories of cross-border venture capital investments. The paper finds out that as to the international institutions, the more the international tax treaties are signed and the warmer welcome the foreign capital receives, the more Cross-boarder venture capital investments will take place in that country. As to the economic institutions of the host country, the cross-border venture capital investments take place in the country where the informal market is few, finance regulation is loose and the degree of market economy is high. As to the political and legal system of host country, the cross-border venture capital investments take place in the country where private property is effectively protected.