What drives foreign direct investment into post-communist economies?

Raufhon Salahodjaev, Oybek Yuldashev and Bekhzod Omanbayev

MPRA Paper from University Library of Munich, Germany

Abstract: This study explores the factors that attract foreign direct investment (FDI) in Post-Communist countries. To do so, for the first time in the extant literature on ex-communist countries, we use panel data over the period 1990-2015. The key findings are as follows: (a) the rate of return and enrollment in education and cost of fuel are negatively associated with FDI inflows to Post-Communist countries; and (b) there is a positive link between FDI inflows to the region and stability of political regime and rule of law; (c) our estimates further confirm the market seeking hypothesis for the nature of FDI to the Post-Communist countries.

Keywords: FDI; determinants; Post-Communist; rule of law; democracy; market seeking. (search for similar items in EconPapers)
JEL-codes: F2 (search for similar items in EconPapers)
Date: 2016-08-22
New Economics Papers: this item is included in nep-int and nep-tra
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:73277

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