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

Nauro F. Campos () and Yuko Kinoshita ()

No wp906, William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan Stephen M. Ross Business School

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: privatization; financial reform; trade liberalization; foreign direct investment; Latin America; transition economies (search for similar items in EconPapers)
JEL-codes: H11 F21 O16 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev and nep-fdg
Date: 2008-01-01
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http://www.wdi.umich.edu/files/Publications/WorkingPapers/wp906.pdf

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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Persistent link: http://EconPapers.repec.org/RePEc:wdi:papers:2008-906

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