What Attracts Foreign Direct Investment: A Closer Look
Economic Affairs, 2009, 29(3), 81-86
13 Pages Posted: 25 Jan 2013
Date Written: March 2009
It is rational to assume that minimal trade barriers (tariffs and quotas), bigger trade sector, lower interest rate regulations, freer international capital market, lower credit and labour market regulations will make investment in a country more lucrative for foreign investors. We confirm this and show the prevalence of non-linearity in the relationships.
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