Foreign Direct Investment: Localization And Institutional Determinants
AbstractThis article examines the foreign direct investment (FDI) in Portugal, i.e why foreign companies are located in Portugal. The compression of the determinants of FDI is important to take decisions on economic policy. The determinants of the location were used as market size, labour cost, taxes and economic stability. Beyond these were introduced two institutional variables the impact of globalization and corruption on FDI. The study applies a panel data approach (Fixed Effects and GMM system estimator). The results show that the market size and globalization has a positive impact on FDI. The corruption has a negative impact on investor decisions. Wages, inflation and taxes are also statistically significant.
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Bibliographic InfoArticle provided by Research Centre in Public Administration and Public Services, Bucharest, Romania in its journal Management Research and Practice.
Volume (Year): 3 (2011)
Issue (Month): 2 (June)
Foreign Direct Investment; Panel Data; Portugal; Globalization and Corruption.;
Find related papers by JEL classification:
- D92 - Microeconomics - - Intertemporal Choice - - - Intertemporal Firm Choice, Investment, Capacity, and Financing
- C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
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- Ivan Deseatnicov & Hiroya Akiba, 2013. "Reconsideration of the Effects of Political Factors on FDI: Evidence from Japanese Outward FDI," Review of Economics & Finance, Better Advances Press, Canada, vol. 3, pages 35-48, February.
- Razvan Catalin DOBREA & Elena Iuliana SERBAN, 2011. "The Contribution Of Foreign Direct Investments To Performance And Competitiveness Growth Of Receivers Countries," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 3(3), pages 42-52, September.
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