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What drives foreign direct investment into post-communist economies?

Author

Listed:
  • Salahodjaev, Raufhon
  • Yuldashev, Oybek
  • Omanbayev, Bekhzod

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.

Suggested Citation

  • Salahodjaev, Raufhon & Yuldashev, Oybek & Omanbayev, Bekhzod, 2016. "What drives foreign direct investment into post-communist economies?," MPRA Paper 73277, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:73277
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    File URL: https://mpra.ub.uni-muenchen.de/73277/1/MPRA_paper_73277.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    FDI; determinants; Post-Communist; rule of law; democracy; market seeking.;

    JEL classification:

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

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