Peer-Reviewed Journal Details
Mandatory Fields
Corcoran, A;Gillanders, R
2015
February
Review of World Economics
Foreign direct investment and the ease of doing business
Published
1 ()
Optional Fields
DETERMINANTS AFRICA FDI
151
103
126
This paper examines the effect that a country's business regulatory environment has on the amount of foreign direct investment it attracts. We use the World Bank's Ease of Doing Business ranking to capture the costs that firms face when operating in a country. Several interesting results emerge. Firstly, the Doing Business rank is highly significant when included in a standard empirical foreign direct investment (FDI) model estimated on data averaged over the period 2004-2009. Secondly, the significance of the overall Doing Business is driven by the Ease of Trading Across Borders component. Thirdly, the relationship is significant for middle income countries, but not for the World's poorest region, Sub-Saharan Africa, or for the OECD. Finally, we find no evidence that the ease of doing business of nearby countries has an effect on the FDI that a country gets in general.
NEW YORK
1610-2878
10.1007/s10290-014-0194-5
Grant Details