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

Journal Title: Journal of Economics and Financial Analysis - Year 2017, Vol 1, Issue 1

Abstract

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.

Authors and Affiliations

Yhlas Sovbetov, Mohamed Moussa

Keywords

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  • EP ID EP246293
  • DOI -
  • Views 123
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How To Cite

Yhlas Sovbetov, Mohamed Moussa (2017). Interaction of Economic Freedom and Foreign Direct Investment Globally: Special Cases from Neglected Regions. Journal of Economics and Financial Analysis, 1(1), 59-80. https://europub.co.uk/articles/-A-246293