Economic freedom and foreign direct investment: Are they related?

Tag, Mehmet Nasih; Değirmen, Süleyman

doi:10.1016/j.eap.2021.12.020

Cited by 20 publications

(6 citation statements)

References 87 publications

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“…Taking particular cases, for Georgia, the investment attractiveness is, mainly, driven by institutional aspects, confirming the institutional theory of North (1990) and the existing empirical studies in the literature (Campos & Kinoshita, 2003;Yerrabati & Hawkes, 2016;Tag & Degirmen, 2022). In other words, Georgia is attractive for foreign investors due to good regulatory quality, economic freedom, ease of doing business, rights, democracy, and low taxation, being in line with some scholars (Harms & Ursprung, 2002;Addison & Heshmati, 2003;Saha et al, 2022).…”

Section: Resultssupporting

confidence: 81%

“…However, the regulatory quality and economic freedom (first pillar) plays the major role for Armenia's investment attractiveness. This means that institutional quality stimulates investment attractiveness for Armenia as like Georgia, confirming the institutional theory of North (1990) and the studies of Campos and Kinoshita (2003), and Tag and Degirmen (2022). At first pillar, Armenia ranks behind Georgia in terms of institutional quality.…”

Section: Resultssupporting

confidence: 67%

“…Nevertheless, one of the most important political factor remains the institutional quality (Nielsen et al, 2017;Tag & Degirmen, 2022). Both domestic and foreign investments are affected by the host country's governance environment and institutional quality.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

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Measuring the Fdi Attractiveness in the Eap Countries From an Institutional Perspective

Sorcaru,

Nuta,

Topliceanu

et al. 2023

Journal of Business Economics and Management

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Countries in the European Union’s neighborhood, such as those in the Eastern Partnership (EaP), have a particular interest in attracting foreign direct investment (FDI) because investment inflows can guarantee them a number of advantages needed for accession. This paper proposes a comparative analysis of the investment attractiveness of the EaP countries in the period 2005–2019 considering the institutional theory of FDI inflows. The research methodology considers a quantitative approach that uses the composite index as a tool. The results show that half of the EaP countries have a high level of investment attractiveness, while the institutional quality has an important influence on attracting FDI.

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Section: Resultssupporting

confidence: 81%

Section: Resultssupporting

confidence: 67%

See 1 more Smart Citation

Measuring the Fdi Attractiveness in the Eap Countries From an Institutional Perspective

Sorcaru,

Nuta,

Topliceanu

et al. 2023

Journal of Business Economics and Management

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“…Additionally, we incorporated the Trade Freedom Index as an alternative proxy variable to conduct robustness checks. This index serves as a comprehensive measure designed to capture a variety of trade restrictions, including tariffs, quotas, implicit administrative restrictions, and controls on exchange rates and capital flows, offering a more encompassing gauge of the degree of trade liberalization [37]. The trade freedom index, as a component of the overall Economic Freedom Index, was extracted from the database of the Heritage Foundation [38].…”

Section: Empirical Model and Identificationmentioning

confidence: 99%

The effects of trade liberalization on inequality in nutrition intake: empirical evidence from Indian districts

Zhang,

2024

BMC Public Health

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Background Despite the positive impact of trade liberalization on food availability in India, severe inequality in nutrition consumption at the district level persists. Empirical evidence on the relationship between trade liberalization and nutrition consumption inequality often offers a country-level perspective and generates disputed outcomes. The study aimed to explore the effects of trade liberalization on inequality in nutrition consumption at the district level in India and to examine the heterogeneity of the impact on different nutrition consumption. Methods Our study employed the Gini Index to measure nutrition consumption inequality of 2 macronutrients and 5 micronutrients at the district level in India during 2009–2011, utilizing the comprehensive FAO/WHO individual food consumption data. The import tariff was adopted as a proxy for trade liberalization, as its externally imposed nature facilitates a causal interpretation. We further identified the direct causal relationship between food trade liberalization and inequality in nutrition consumption using a fixed effects model. Results The results show that more than 50% of the individuals in the survey districts did not meet the dietary standards for both macronutrients and micronutrients. Food trade liberalization hindered the improvement of inequality in nutrition consumption. As import tariffs were reduced by 1%, the inequality in intake of calories, zinc, vitamin B1, and vitamin B2 increased significantly by 0.45, 0.56, 0.48, and 0.66, respectively, which might be related to food market performance. The results also highlight the positive role of the gender gap, female-headed households, and caste culture on inequality in nutrition consumption in India. Conclusions To ease the shock of liberalization and minimize its inequality effects, complementary measures should be adopted, such as improving food logistic conditions in poor areas, and nutrition relief schemes.

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“…The third category believes that there is no relationship between human capital development and economic freedom and economic growth (Jadoon et al, 2015). The last category is the feedback effect among economic freedom, human capital development and economic growth (Qingchen, 2020;Ciftci and Durusu-Ciftci, 2022;Tag and Degirmen, 2022). In this study, we adopt the first and second categories and propose hypotheses 2 and 3: H2.…”

Section: Economic Freedom and Economic Growthmentioning

confidence: 99%

Investigate the impact of human capital, economic freedom and governance performance on the economic growth of the BRICS

Duan

Zhou

Yuan-qing

et al. 2022

JEIM

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PurposeThis paper investigates the relationship between human capital, economic freedom, governance performance, and economic growth and whether institutional factors such as governance performance and economic freedom mediate the association between human capital and economic growth.Design/methodology/approachIn this study, the authors apply the panel data regression method to verify five hypotheses and check the robustness of the empirical findings from four aspects (chow test, panel unit root test, granger test and generalized method of moments) based on the data covering China, India, Russia, Brazil and South Africa from 2000 to 2018.FindingsAfter multiple tests with mixed methods, the empirical results show that the relationship between human capital and economic growth is not linear but inverted U-shaped. Furthermore, human capital has a positive effect on economic growth only in a certain period of time, and governance performance positively moderates the effect of human capital on economic growth in BRICS.Originality/valueFirst, the impact of human capital on economic growth is not linear but an inverted U-shaped and governance performance moderates the effect of human capital on economic growth in BRICS. The study and research model enhances the authors’ insights on the advantage and challenges of human capital in the future. Second, the proposed multi-methods in the study accurately forecast economic growth which partially solves endogenous problems because of reverse causality.

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Economic freedom and foreign direct investment: Are they related?

Cited by 20 publications

References 87 publications

Measuring the Fdi Attractiveness in the Eap Countries From an Institutional Perspective

Measuring the Fdi Attractiveness in the Eap Countries From an Institutional Perspective

The effects of trade liberalization on inequality in nutrition intake: empirical evidence from Indian districts

Investigate the impact of human capital, economic freedom and governance performance on the economic growth of the BRICS

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