 International evidence on the link between foreign direct investment and economic freedomW.N.w Azman-Saini, Yin-Li Tun and Saifuzzaman Ibhrahim MPRA Paper from University Library of Munich, Germany Abstract: Foreign direct investment (FDI) is viewed as one of the key component in the development strategy for many countries,especially for developing ones. However, the distribution of FDI across countries is not uniform as only few countries are able to attract the bulk of FDI. In an effort to further understand the evolution in MNCs locational decision and understand their changing need, this paper examines whether economic freedom has any important role in attracting FDI inflows. To test the hypothesis, this study utilises data from 75 countries over the 1981-2005 period. The resultsof system generalised method-of-moment panel estimator uncover that the importance of economic freedom in attracting FDI inflows is undisputable. This is consistent with the view that improvements in freedom of economic activity provide a better environment for business activity. Keywords: foreign direct investment; economic freedom; generalised method-of-moments (search for similar items in EconPapers) Published in Pertanika Journal of Social Sciences & Humanities 21 (2013): pp. 157-170 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:65894 Access Statistics for this paper More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC. |
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