Economic Freedom and FDI in Selected Developing Countries

Arash Ketabforoush Badri and Aidin Poorabdollahi Sheshgelani
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Aidin Poorabdollahi Sheshgelani: Department of Management, Faculty of Management, Economics and Accounting, Tabriz branch, Islamic Azad University, Iran

Noble International Journal of Economics and Financial Research, 2017, vol. 2, issue 5, 82-87

Abstract: One of the factors of providing capital for investment in different economic sectors which can be very useful is foreign direct investment. For we can say that by FDI entering the host countries, in spite of providing capital, technology transfer, import of expert human capital, management and knowledge are happen too. Therefore, special attention to this fact and considering the solutions and improving policies for increasing FDI seem necessary. For achieving this, this study is trying to consider the effect of economic freedom on FDI in 10 selected developing countries in period of 2001 to 2013 using the panel data method. The results show that economic freedom has a positive and meaningful effect on FDI in the studied countries. Also the index of economic openness, gross capital formation and financial development are some of the factors that have a positive and meaningful effect on FDI attraction process in the host country.

Keywords: Economic Freedom; FDI; Financial Development; Index of Economic Openness; Panel Data (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (2)

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