Determinants of FDI: Does democracy matter?

Strategic Management

Farazmand Hasan¹  Moradi Mahvash¹ 

[1] Chamran University, Department of Economics, Ahvaz, Iran;

关键词: foreign direct investment;    democracy;    panel data;   

DOI  :  

来源: DOAJ

【 摘 要 】

Having access to foreign investments allows a country to acquire opportunities that otherwise could not be got. Many factors interfere in absorbing investments in developing countries, but there have been a limited consensus on which factors play an unambiguous role. Using different econometric techniques for a data sample of 5 developing countries and the period 1990 to 2012, we identify those factors that matter most for explaining determinants of foreign direct investment. Based on results, democracy can positively affect investors’ decision about where to locate capital. Also, we find foreign direct investment as a share of GDP, is significantly associated with low corruption and inflation and high openness, literacy rate and infrastructure.

【 授权许可】

Unknown