Abstract
The objective of this study is to explore, through a cross-sectional econometric model, the factors of foreign direct investment (FDI) inflows in developed and developing countries over two periods 2005-2006. This work is based on cross-sectional data of 57 countries. In the model, FDI is dependent variable. Independent variables are per capita income, inflation rate, openness, per capita income growth rate, unemployment rate and dummy. According to the econometric results, in the main model, per capita income has positive sign and statistically significant. Inflation rate and unemployment rate present negative sign and are insignificant. Per capita income growth rate and openness have positive sign and both are not significant.
Table of Contents
Introduction 4
Literature Review 4
Theoretical Model 6
Data Collection .7
Methodology 7
Data Analysis and Interpretation 9
Conclusions and Recommendations 14
References 15
Bibliography 16
Appendix ………………………………………………………………………………………...17
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Literature Review
- Theoretical Model
- Data Collection
- Methodology
- Data Analysis and Interpretation
- Conclusions and Recommendations
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This study aims to explore the factors influencing foreign direct investment (FDI) inflows in developed and developing countries using a cross-sectional econometric model. The study utilizes data from 57 countries over the period 2005-2006.
- Determinants of foreign direct investment (FDI) inflows in developed and developing countries.
- The relationship between macroeconomic variables and FDI.
- The role of per capita income, inflation rate, openness, per capita income growth rate, and unemployment rate in influencing FDI.
- The impact of stability and risk perception on FDI decisions.
- The significance of FDI for economic growth and development.
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: The introduction sets the stage for the study, highlighting the importance of FDI as a source of foreign exchange reserves and its impact on economic stability. It outlines the study's objectives and the variables to be examined, emphasizing the need to understand the factors driving FDI inflows.
- Literature Review: This chapter reviews existing literature on the determinants of FDI. It explores the influence of macroeconomic factors such as inflation, government debt, interest rates, and unemployment rates on FDI decisions. Additionally, it highlights the role of policies aimed at attracting FDI, including liberalization and investment incentives.
- Theoretical Model: This section presents the econometric model developed for the study. It specifies the dependent and independent variables, including per capita income, inflation rate, openness, per capita income growth rate, unemployment rate, and a dummy variable for GDP levels. It provides a theoretical basis for the expected relationships between these variables and FDI.
- Data Collection: This chapter describes the data sources and collection methods employed in the study. It explains the use of cross-sectional data from 57 countries covering both developed and developing economies.
Schlüsselwörter (Keywords)
The study focuses on foreign direct investment (FDI), macroeconomic variables, economic growth, development, cross-sectional econometrics, per capita income, inflation rate, openness, per capita income growth rate, unemployment rate, and risk perception.
- Citar trabajo
- Amine El Kiassi (Autor), 2010, An econometric analysis of the determinants of foreign direct investment in developed and developing countries , Múnich, GRIN Verlag, https://www.grin.com/document/152940
