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فهرست مقالات

An Examination of Economic Liberalization Impact on Foreign Direct Investment in Selected Developing Countries

نویسنده:

ISC (18 صفحه - از 1 تا 18)

کلیدواژه ها :

Inflation ،foreign direct investment ،Infrastructures ،Economic Liberalization ،Panel Model

کلید واژه های ماشینی : Liberalization Impact Foreign Direct Investment ، Foreign Direct Investment ، FDI ، Impact Foreign Direct Investment Selected ، Direct Investment Selected Developing Countries ، An Examination Economic Liberalization ، Determinants Foreign Direct Investment ، Determinants Location Foreign Direct Investment ، The Foreign Direct Investment ، Determinants US Direct Investment Mexico

Foreign direct investment (FDI) is considered as an instrument for overcoming capital shortage problem as well as a suitable way for accessing modern technologies. Thus, recognizing determinant factors of foreign direct investment is important for its absorbing. According to literature, Economic liberalization is an important factor affecting FDI. Experience of developing countries resorting to liberalization policies also indicates that they absorb considerable FDI. Purpose of this paper is to examine the hypothesis which is “economic liberalization has a positive effect on FDI” as well as other major factors determining FDI. For this, we have pooled data for the developing countries during time period 1995-2004. The obtained results indicate that economic liberalization has a positive and significant effect on the FDI, while inflation has a negative and significant effect and both of them seem to be robust. Based the results obtained, if developing countries attempt to attract FDI, it should be more efficient to focus on economic liberalization and to develop their infrastructure rather than just reducing wages. Also, regarding negative and significant effect of inflation on FDI, these countries should provide a stable environment to facilitate inflow of foreign direct investment.

خلاصه ماشینی:

"An Examination of Economic Liberalization Impact on Foreign Direct Investment in Selected Developing Countries Saeed Rasekhi 1 Zeinab Seyedi 2 Abstract F oreign direct investment (FDI) is considered as an instrument for overcoming capital shortage problem as well as a suitable way for accessing modern technologies. Table 1: Method of measuring FDI determinants in present research Variable Proxy Symbol Expected sign Data source Economic liberalization Heritage Index HERITAGE + Heritage Foundation Market size Gross National Income GNI + WDI CD-Room Inflation Inflation rate INF _ WDI CD-Room Wage Wage rate WAGE _ WDI CD-Room Infrastructures WDI index INF + WDI CD-Room Before anything further, it is suitable to consider FDI inflows’ trend for selected developing countries and comparing it with economic liberalization situation of these countries. The underlying specification is a model of the form: 1 Where represents the inflows accruing for the country in year , is a set of proxies of the determinants of FDI (market size, economic liberalization, inflation, wage and infrastructures) detailed above, indexes the countries in year . Coefficient of market size is estimated near zero that indicates that it is less important than the main determinant factors such as economic liberalization and infrastructures in absorbing FDI for the considered countries. Also, regarding negative and significant effect of inflation on FDI, these countries should provide a stable environment to facilitate inflow of foreign direct investment. Also, regarding negative and significant effect of inflation on FDI, these countries should provide a stable environment to facilitate inflow of foreign direct investment."


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