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Ease of doing business and FDI in the ex-socialist countries

Branimir Jovanovic () and Biljana Jovanovic ()
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Branimir Jovanovic: Institute of Social Sciences and Humanities, Skopje, Republic of Macedonia, and CERGE-EI
Biljana Jovanovic: National Bank of the Republic of Macedonia

International Economics and Economic Policy, 2018, vol. 15, issue 3, 587-627

Abstract: Abstract This study investigates if ease of doing business, measured through the Doing Business indicators of the World Bank, affects foreign direct investment in 27 ex-socialist countries. Classical and Bayesian econometric techniques are employed. Results point out that there is a lot of uncertainty regarding the effects, with most of the indicators being either insignificant or lacking robustness. The only aspect of the business regulation that stands out as a robust determinant in the two estimations is the ease of trading across borders.

Keywords: Doing business; Business regulation; Foreign direct investment; Ex-socialist countries (search for similar items in EconPapers)
Date: 2018
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