Foreign Direct Investment and Structural Reforms: Evidence from Eastern Europe and Latin America

Nauro Campos and Yuko Kinoshita ()
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Yuko Kinoshita: International Monetary Fund

No 3332, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper investigates the role of structural reforms – privatization, financial reform and trade liberalization – as determinants of FDI inflows based on newly constructed dataset on structural reforms for 19 Latin American and 25 Eastern European countries between 1989 and 2004. Our main finding is a strong empirical relationship from reforms to FDI, in particular, from financial liberalization and privatization. These results are robust to different measures of reforms, split samples, and potential endogeneity and omitted variables biases.

Keywords: foreign direct investment; trade liberalization; financial reform; privatization; Latin America; transition economies (search for similar items in EconPapers)
JEL-codes: F21 H11 O16 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2008-02
New Economics Papers: this item is included in nep-dev, nep-fdg and nep-opm
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Citations: View citations in EconPapers (75)

Published - revised version published in: IMF Staff Papers, 2010, 57 (2), 326-365

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Related works:
Working Paper: Foreign Direct Investment and Structural Reforms: Evidence from Eastern Europe and Latin America (2008)
Working Paper: Foreign Direct Investment and Structural Reforms: Evidence from Eastern Europe and Latin America (2008)
Working Paper: Foreign Direct Investment and Structural Reforms: Evidence from Eastern Europe and Latin America (2008)
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