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Foreign Direct investment and Investment Climate

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  • Nihal Bayraktar

Abstract

The changing direction of foreign direct investment (FDI) from developed countries towards developing ones, especially after the crisis, has started to attract more attention in the literature. In this paper, the link between FDI and “ease of doing business” indicators, as one possible source of the changing direction of FDI, is investigated. The data source is the World Bank’s Doing Business Database. The study covers the years from 2004 to 2010. Because the paper includes the years right before the economic and financial global crisis, as well as the crisis period, the impact of changing “ease of doing business” on the changing direction of FDI towards developing countries can be better evaluated. Emperical. Statistical and graphical analysis. Econometric analysis with panel data The initial results show that countries which have better records of “doing business” tend to attract more FDI. The improvement in “ease of doing business” indicators in developing countries can have a partial explanatory power in determining higher FDI flows to these countries.

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  • Nihal Bayraktar, 2013. "Foreign Direct investment and Investment Climate," EcoMod2013 5294, EcoMod.
    • Handle: RePEc:ekd:004912:5294
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    References listed on IDEAS

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    3. Alex Bowen & Emanuele Campiglio & Sara Herreras Martinez, 2015. "The ‘optimal and equitable’ climate finance gap," GRI Working Papers 184, Grantham Research Institute on Climate Change and the Environment.
    4. Paul Sindze & Phouthakannha Nantharath & Eungoo Kang, 2021. "FDI and Economic Growth in the Central African Economic and Monetary Community (CEMAC) Countries: An Analysis of Seven Economic Indicators," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 12(1), pages 1-11, January.
    5. Bersan Haliti & Safet Merovci, 2020. "The Impact of the Investment Environment on Foreign Direct Investment (FDI) in the European Transition Economies," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 1, pages 138-147, March.
    6. Oliver E. Ogbonna & Jonathan E. Ogbuabor & Charles O. Manasseh & Davidmac O. Ekeocha, 2022. "Global uncertainty, economic governance institutions and foreign direct investment inflow in Africa," Economic Change and Restructuring, Springer, vol. 55(4), pages 2111-2136, November.
    7. Eric Mokwaro Bosire, 2019. "Does Better Business Regulatory Environment Translate to Increased Foreign Direct Investment Inflows? Evidence from Eastern Africa," International Journal of Economics and Financial Issues, Econjournals, vol. 9(4), pages 119-136.
    8. Mendoza, Ronald U. & Canare, Tristan A. & Ang, Alvin, 2015. "Doing Business: A Review of Literature and Its Role in APEC 2015," Research Paper Series DP 2015-37, Philippine Institute for Development Studies.
    9. Edward Nketiah-Amponsah & Bernard Sarpong, 2020. "Ease of Doing Business and Foreign Direct Investment: Case of Sub-Saharan Africa," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 26(3), pages 209-223, August.
    10. Maja Nikšić Radić, 2018. "Terrorism as a Determinant of Attracting FDI in Tourism: Panel Analysis," Sustainability, MDPI, vol. 10(12), pages 1-17, December.
    11. Ang, Alvin & Mendoza, Ronald U. & Canare, Tristan A., 2015. "Doing Business: A Review of Literature and Its Role in APEC 2015," Discussion Papers DP 2015-37, Philippine Institute for Development Studies.
    12. Rasheed Abolaji FOLARIN, 2021. "Foreign Direct Investment and Nigeria Economy Growth," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 22(4), pages 608-615, October.
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    14. Tristan Canare, 2018. "The Effect of Ease of Doing Business on Firm Creation," Annals of Economics and Finance, Society for AEF, vol. 19(2), pages 555-584, November.

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