Determinants of Foreign Direct Investment in Developed and Developing Countries: Impact of Political Stability

نویسندگان

چکیده

Stable political environment and prominent development of institutions increase foreign direct investment flows by providing lower risks for investors. However, this impact can vary according to the country. This study aims investigate various indicators stability on attraction different economies distinguished their level. Our database includes 66 FDI-recipient countries 98 FDI-investing period from 2001 2018. By applying gravity approach Poisson Pseudo Maximum Likelihood method with instrumental variables (IV PPML), we model bilateral FDI flows, incorporating reflecting aspects formed principal components analysis. Interestingly, found mixed results regarding flows. In particular, were be insignificant, when analysing group developed economies. We obtained similar result developing significantly influence level, confirming hypothesis that countries’ affects Besides, discover significant difference between referring FDI-investors. Based results, highlight a few policy implications

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ژورنال

عنوان ژورنال: Èkonomika Regiona

سال: 2021

ISSN: ['2411-1406', '2072-6414']

DOI: https://doi.org/10.17059/ekon.reg.2021-4-24