Foreign Direct Investment and Structural Reforms: Evidence from Eastern Europe and Latin America

Nauro Campos and Yuko Kinoshita

No 6690, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: This paper investigates the role of structural reforms ?privatization, financial reform and trade liberalization? as determinants of FDI inflows based on newly constructed dataset on structural reforms for 19 Latin American and 25 Eastern European countries between 1989 and 2004. Our main finding is a strong empirical relationship from reforms to FDI, in particular, from financial liberalization and privatization. These results are robust to different measures of reforms, split samples, and potential endogeneity and omitted variables biases.

Keywords: Financial reform; Foreign direct investment; Latin america; Privatization; Trade liberalization; Transition economies (search for similar items in EconPapers)
JEL-codes: F21 H11 O16 (search for similar items in EconPapers)
Date: 2008-02
New Economics Papers: this item is included in nep-dev and nep-fdg
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Citations: View citations in EconPapers (82)

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Related works:
Working Paper: Foreign Direct Investment and Structural Reforms: Evidence from Eastern Europe and Latin America (2008)
Working Paper: Foreign Direct Investment and Structural Reforms: Evidence from Eastern Europe and Latin America (2008)
Working Paper: Foreign Direct Investment and Structural Reforms: Evidence from Eastern Europe and Latin America (2008)
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