Public Policies and FDI Location: Differences between Developing and Developed Countries

Timothy Goodspeed (), Jorge Martinez-Vazquez () and Li Zhang ()
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Li Zhang: Central University of Finance and Economics, China

No 434, Economics Working Paper Archive at Hunter College from Hunter College Department of Economics

Abstract: This paper examines the impact of three host country government policies (taxation, good governance, and infrastructure) on the host’s FDI stock. We focus on whether the impact of these factors differs depending on the level of development of the host country. The regression results indicate that FDI is sensitive to host country taxation in developed countries, but not in developing countries; FDI is sensitive to host country governance measures and corruption in both developing countries and developed, with a somewhat larger impact for developing countries; and FDI shows sensitivity to host country infrastructure quality in both developed and developing host countries.

Keywords: FDI location; corporate taxes; corruption; infrastructure; developing countries (search for similar items in EconPapers)
JEL-codes: H25 H87 K10 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (22)

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Related works:
Journal Article: Public Policies and FDI Location: Differences between Developing and Developed Countries (2011)
Working Paper: Public Policies and FDI Location: Differences Between Developing and Developed Countries (2010)
Working Paper: Public Policies and FDI Location: Differences between Developing and Developed Countries (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:htr:hcecon:434

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