Economics at your fingertips  

Economic freedom and foreign direct investment in developing countries

Vibha. Kapuria-Foreman ()
Additional contact information
Vibha. Kapuria-Foreman: Colorado College, USA

Journal of Developing Areas, 2007, vol. 41, issue 1, 143-154

Abstract: This paper employs cross-country growth regressions for a sample of developing countries to examine the determinants of FDI. In addition to economic factors affecting foreign direct investment, the analysis also tests for the role of institutional quality (enforcement of property rights, corruption, etc.) and policy orientation factors (openness). The paper evaluates whether foreign investment responds to changes in levels of economic freedom. In addition it tests whether the insignificant coefficient found in previous studies is the result of the level of aggregation in the economic freedom data. Finally, it disaggregates the data on economic freedom and re-estimates the relationship between FDI and components of economic freedom. Foreign direct investment is found to vary positively with increases in certain components of economic freedom.

Keywords: Foreign Direct Investment; Economic Freedom; FDI (search for similar items in EconPapers)
JEL-codes: F21 O17 (search for similar items in EconPapers)
Date: 2007
References: Add references at CitEc
Citations View citations in EconPapers (8) Track citations by RSS feed

Downloads: (external link)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in Journal of Developing Areas from Tennessee State University, College of Business Contact information at EDIRC.
Series data maintained by Abu N.M. Wahid ().

Page updated 2017-09-29
Handle: RePEc:jda:journl:vol.41:year:2007:issue1:pp:143-154