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Economic Freedom and Foreign Direct Investment in Latin America: A Panel Gravity Model Approach

Author

Listed:
  • Turan Subasat

    (Izmir University of Economics)

  • Sotiris Bellos

    (National Bank of Greece)

Abstract

This paper employs a panel data gravity model to examine the impact of economic freedom (EF) on foreign direct investment (FDI) in the context of Latin American countries. Our results suggest that while FDI responds to many EF measures positively, such results cannot be generalised.

Suggested Citation

  • Turan Subasat & Sotiris Bellos, 2011. "Economic Freedom and Foreign Direct Investment in Latin America: A Panel Gravity Model Approach," Economics Bulletin, AccessEcon, vol. 31(3), pages 2053-2065.
    • Handle: RePEc:ebl:ecbull:eb-11-00416
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    References listed on IDEAS

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    Cited by:

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    2. Shouro Dasgupta, Shouro & De Cian, Enrica & Verdolini, Elena, 2016. "The Political Economy of Energy Innovation," MITP: Mitigation, Innovation and Transformation Pathways 234939, Fondazione Eni Enrico Mattei (FEEM).
    3. Coates, Dennis & Mirkina, Irina, 2021. "Economic Freedom of the Russian Federation," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 51(1), January.
    4. Sayef Bakari & Sofien Tiba, 2019. "The Impact of Trade Openness, Foreign Direct Investment and Domestic Investment on Economic Growth: New Evidence from Asian Developing Countries," Economic Research Guardian, Weissberg Publishing, vol. 9(1), pages 46-54, June.
    5. Shah, Mumtaz Hussain & Lala, Gule, 2017. "Autocracy, Democracy and FDI inflows in Asian Developing Countries," MPRA Paper 107248, University Library of Munich, Germany.
    6. Bellos Sotirios K., 2016. "IMF programs and policies assessment in the transition economies during the transition and the post-transition period," Journal of Heterodox Economics, Sciendo, vol. 3(2), pages 102-127, December.
    7. Tobias Zander, 2021. "Does corruption matter for FDI flows in the OECD? A gravity analysis," International Economics and Economic Policy, Springer, vol. 18(2), pages 347-377, May.
    8. Amar Iqbal Anwar & Mazhar Mughal, 2012. "Economic Freedom and Indian Outward Foreign Direct Investment: An Empirical Analysis," Economics Bulletin, AccessEcon, vol. 32(4), pages 2991-3007.
    9. Niti Bhasin & Rinku Manocha, 2016. "Do Bilateral Investment Treaties Promote FDI Inflows? Evidence from India," Vikalpa: The Journal for Decision Makers, , vol. 41(4), pages 275-287, December.
    10. Brinda Sooreea-Bheemul & Uzma Shataz Rasool & Rajeev Sooreea, 2020. "Does Economic Freedom Matter to Foreign Direct Investment in Sub-Saharan Africa?," International Journal of Economics and Financial Issues, Econjournals, vol. 10(3), pages 195-207.
    11. Kahouli, Bassem & Maktouf, Samir, 2015. "The determinants of FDI and the impact of the economic crisis on the implementation of RTAs: A static and dynamic gravity model," International Business Review, Elsevier, vol. 24(3), pages 518-529.
    12. Turan Subasat & Sotirios Bellos, 2013. "Governance and foreign direct investment in Latin America: A panel gravity model approach," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 50(1), pages 107-131, May.
    13. Moheddine Younsi & Marwa Bechtini, 2019. "Does good governance matter for FDI? New evidence from emerging countries using a static and dynamic panel gravity model approach," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 27(3), pages 841-860, July.
    14. Bakari, Sayef, 2021. "Reinvest the relationship between exports and economic growth in African countries: New insights from innovative econometric methods," MPRA Paper 108785, University Library of Munich, Germany.
    15. Shouro Dasgupta & Enrica De Cian & Elena Verdolini, 2016. "The Political Economy of Energy Innovation," Working Papers 2016.35, Fondazione Eni Enrico Mattei.
    16. Kazeem Bello AJIDE & P.B. EREGHA, 2014. "Economic Freedom And Foreign Direct Investment In Ecowas Countries: A Panel Data Analysis," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 14(2).
    17. Omodero Cordelia Onyinyechi, 2019. "Effect of Corruption on Foreign Direct Investment Inflows in Nigeria," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 29(2), pages 54-66, June.
    18. Yilmaz BAYAR, & Naib ALAKBAROV, 2016. "CORRUPTION AND FOREIGN DIRECT INVESTMENT INFLOWS IN EMERGING MARKET ECONOMIES Usak University, Department of Economics, Usak, Turkey," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 5(2), pages 1-47, July.

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    More about this item

    Keywords

    Economic freedom; FDI; Latin America; panel gravity model.;
    All these keywords.

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • F0 - International Economics - - General

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