INFLUENCE OF BUSINESS ENVIRONMENT AND SUSTAINABILITY ON FOREIGN DIRECT INVESTMENT

Ibadete Daku and Egla Mansi
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Ibadete Daku: Banking and Finance Department, Epoka University, Tirana, Albania
Egla Mansi: Economics Business Administration Department, Epoka University, Tirana, Albania

Journal of Financial and Monetary Economics, 2023, vol. 11, issue 1, 198-211

Abstract: The purpose of this research paper is to analyze the influence of business environment and sustainability on foreign direct investment in European Union countries. Our focus is based on the improvement of business regulations to enable an environment for investors that offers security and prosperity but makes allowances for the investors’ sustainable choices. Beside our main purpose which is the impact indicators of Doing Business on inward foreign investment of the host country, a comparison between two groups of countries is also conducted their business environment. Dealing with construction permits and resolving insolvency are seen to have a strong positive relationship, while paying taxes and starting a business impact positively FDI but were found insignificant. In addition, investors’ attention is drawn more to economies whose carbon emissions are lower, which underlies the sensibilization for a “cleaner” environment.

Keywords: Foreign direct investment; Ease of doing business; Sustainability (search for similar items in EconPapers)
JEL-codes: F21 (search for similar items in EconPapers)
Date: 2023
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