Interaction of Economic Freedom and Foreign Direct Investment Globally: Special Cases from Neglected Regions

Journal of Economics and Financial Analysis

Mohamed Moussa¹  Yhlas Sovbetov² 

[1] Istanbul University;London School of Commerce

关键词: Economic Freedom;    Openness of Economy;    Foreign Direct Investments;    Neglected Regions;    Panel Data Analysis.;   

DOI  :  10.1991/jefa.v1i1.a4

学科分类：社会科学、人文和艺术（综合）

来源: Tripal Publishing House

【 摘 要 】

This paper studies the macroeconomic impact of economic freedom on foreign direct investments inflows in both global and regional panel analyses involving 156 countries through the period of 1995-2016. Unlike to prior literature, it includes often neglected nations such as Fragile and Conflict-Affected states, Sub-Saharan, Oceanian, and Post-Soviet countries. The paper finds a positive impact of economic freedom on FDI under fixed-effects model in global case where a unit change in economic freedom scales FDI inflows up to 1.15 units. More specifically, all 9 regions also refer to positive and significant impact of economic freedom on FDI. The highest impact is recorded in European countries, whereas the lowest ones are documented in Fragile-Conflict affected states, Sub-Saharan zone, and Oceanian countries.

【 授权许可】

CC BY-NC-ND