The Determinants of Direct Foreign Investment in Developing Countries

Nonnenberg, Marcelo José Braga; Mendonça, Mario Jorge Cardoso de

doi:10.2139/ssrn.525462

Cited by 58 publications

(59 citation statements)

References 2 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Nevertheless, there are mechanisms and policies that influence the relationship between these two variables, such as preferential free trade agreements and unilateral reductions in tariffs, which make that relationship complex (Ponce, 2006). Several authors found a significant positive relationship between FDI inflows and the degree of openness (Gastanaga et al, 1998;Nonnenberg and Mendonça, 2004;Agiomirgianakis et al, 2006;and Mathur and Singh, 2013).…”

Section: Determinants Of Fdi and Corruptionmentioning

confidence: 99%

“…Negative and significant effects on FDI inflows were found by Nonnenberg and Mendonça (2004), Kahai (2004), and AlSadig (2009), despite some authors found that inflation is not statistically significant (as Ponce, 2006 Barro (1991), political instability creates an uncertain economic environment, which Política / Revista de Ciencia Política has a negative impact in long-term planning, and thus, reduces economic growth and investment opportunities.…”

Section: Determinants Of Fdi and Corruptionmentioning

confidence: 99%

“…Several studies find a positive and significant correlation between the level of GDP and FDI (Bhasin et al, 1994;UNCTAD, 1998;Morisset, 2000;Globerman and Shapiro, 2002;Nonnenberg and Mendonça, 2004), meanwhile other researchers de not only use the level of GDP but also the growth rate to show that the level of output (or the GDP per capita) and the growth prospects play an important role in FDI attracting (Wang and Swain, 1995;UNCTAD, 1998;Agiomirgianakis et al, 2006, the last using the GDP per capita and the growth rate). Lipsey (1999) and Agiomirgianakis et al (2006) also found that higher per capita income attracts FDI inflows, while Edwards (1990) and Jaspersen et al (2000) found the effects to be negative for developing countries.…”

Section: Determinants Of Fdi and Corruptionmentioning

confidence: 99%

See 2 more Smart Citations

Does corruption inhibit foreign direct investment?

Castro

Nunes²

2013

Revista Política

View full text Add to dashboard Cite

Globalization creates new opportunities for firms to invest abroad and many economies are making active efforts to attract Foreign Direct Investment (FDI) in order to promote economic growth. Decisions to invest abroad depend on a complex set of factors, but the least corrupt countries may attract more foreign direct investment because they provide a more favorable climate for investors. In this paper we investigate the impact of corruption on FDI inflows in 73 countries, over the period 1998-2008. Our results suggest that countries where corruption is lower, the FDI inflows are greater, and so controlling corruption may be an important strategy for increase FDI inflows. Keywords: Corruption, Foreign Direct Investment, economic growth. ¿La corrupción inhibe La inversión extranjera Directa?La globalización ha creado nuevas oportunidades para invertir en el extranjero y muchas economías están haciendo esfuerzos para atraer inversión extranjera directa (IED) con el fin de promover el crecimiento económico. La decisión de invertir en el extranjero depende de un complejo conjunto de factores. No obstante, los países menos corruptos pueden atraer más inversión extranjera directa, ya que proporcionan un clima más favorable para los inversionistas. En este trabajo se investiga el impacto de la corrupción sobre los flujos de IED en 73 países, en el período 1998-2008. Los resultados sugieren que los países donde la corrupción es menor, las entradas de IED son mayores, por lo que el control de la corrupción puede ser una estrategia importante para aumentar los flujos de IED. Palabras clave: corrupción, Inversión extranjera directa, crecimiento económico.

show abstract

Section: Determinants Of Fdi and Corruptionmentioning

confidence: 99%

Section: Determinants Of Fdi and Corruptionmentioning

confidence: 99%

Section: Determinants Of Fdi and Corruptionmentioning

confidence: 99%

See 1 more Smart Citation

Does corruption inhibit foreign direct investment?

Castro

Nunes²

2013

Revista Política

View full text Add to dashboard Cite

show abstract

“…Reference [14] as well as [22] find that inflation is a significant variable which influences foreign investors who wish to invest in Africa. Reference [23] shows that FDI is correlated to the level of inflation in developing nations. A low level of inflation is likely to encourage more FDI inflows as it indicates that an economy has sound macroeconomic policies.…”

Section: Literature Reviewmentioning

confidence: 99%

The Determinants of Foreign Direct Investment in the African Union

Kariuki¹

2015

JOEBM

View full text Add to dashboard Cite

Abstract-This paper will examine the factors that influence foreign direct investment (FDI) flows into African countries. FDI flows are important for African nations as they promote economic development. Estimation results using the Least Squares Dummy Variable model also known as the fixed effects model indicate that i) a high economic risk has a negative and significant effect on FDI flows into Africa ii) both political risk and financial risk have a negative but insignificant impact on FDI inflows iii) there is a positive and significant relationship between the commodity price index performance and FDI inflows iv) the good performance of stock markets in developed countries has a positive and significant impact on FDI inflows v) an increase in the infrastructure of a country has a positive and significant effect on FDI inflows vi) an increase in openness to trade has a positive and significant effect on FDI inflows vii) the amount of FDI received in the previous year by African countries is significant in influencing the FDI flows that come into the African continent in the current year. Annual data from 1984 until 2010 using 35 African countries is used for this panel study.Index Terms-Africa, foreign direct investment, long term capital movements, panel data.

show abstract

“…Population, GNP growth, firm entry restrictions, post-entry restrictions and technology regulation proved to be not significant. Nonnemberg and Cardoso de Medonco (2004) have made attempt to estimate the main determinants of FDI in developing countries. They have shown that such factors as the size and rate of growth of the product, the availability of skilled labor, the receptivity of foreign capital, the country risk rating, and the behavior of the stock market play important roles in FDI.…”

Section: Literature Reviewmentioning

confidence: 99%

Determinants of Foreign Direct Investments in Real Estate in European Countries - Panel Data Analysis

Anop

2010

Proceedings of the 17th Annual European Real Estate Society Conference - Milan, Italy

View full text Add to dashboard Cite

Foreign direct investments (FDI) have been one of the core features of globalization and the world economy over the past two decades. Statistical data shows that the level of FDI was continuously increasing during [2003][2004][2005][2006][2007], but the directions and amount of such inflows differs significantly between the countries. Investments in real estate are just one of these inflows and European countries proved to be successful in this process. The objective of this study is to highlight theoretical and empirical findings about determinants of foreign direct investment in real estate in developed European countries. This paper first present and analyze existing scientific theories in this area with special attention to real estate investments, then focuses on assessing the relative significance of the factors that may attract FDI in real estate via a panel data regression analysis for a representative sample consisting of 15 OECD countries for 1996-2007. Results of the study suggest that certain variables such as size of GDP, human capital and road infrastructure appear to be robust under different specifications. Significance of these factors estimates are also observed, confirming the relevant theoretical propositions. However, certain differential variables that expected to have positive effect proved to be insignificant within the estimated data sample.

show abstract

The Determinants of Direct Foreign Investment in Developing Countries

Cited by 58 publications

References 2 publications

Does corruption inhibit foreign direct investment?

Does corruption inhibit foreign direct investment?

The Determinants of Foreign Direct Investment in the African Union

Determinants of Foreign Direct Investments in Real Estate in European Countries - Panel Data Analysis

Contact Info

Product

Resources

About