Does a country’s business regulatory environment affect its attractiveness to FDI? Empirical evidence from Central and Southeast European countries

Mehmed Ganic () and Mahir Hrnjic ()
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Mahir Hrnjic: International University of Sarajevo, Bosnia and Herzegovina

Eastern Journal of European Studies, 2019, vol. 10(2), 89-105

Abstract: The paper squarely concentrates on an examination of the relationship between a country’s business regulatory environment and the inward stock of foreign direct investment (FDI) in fifteen selected countries of Central Eastern and Southeast Europe by using a Mean Group (MG) estimator. The paper found no evidence that a country’s business regulatory environment is a statistically significant predictor of FDI neither in Central Eastern European nor in Southeast European countries. However, the study’s findings recommend that a further increase in FDI in both regions can be achieved by further economic growth, political stability, European Union integration and reduction costs of business regulations.

Keywords: business regulatory environment; FDI; transition countries; Mean Group (MG) estimator; the OLI paradigm (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:jes:journl:y:2019:v:10:p:89-105

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