1. bookVolume 20 (2020): Issue 1 (March 2020)
Journal Details
License
Format
Journal
eISSN
1804-1663
First Published
19 Feb 2010
Publication timeframe
4 times per year
Languages
English
access type Open Access

Economic Freedom and its Impact on Foreign Direct Investment: Global Overview

Published Online: 11 May 2020
Volume & Issue: Volume 20 (2020) - Issue 1 (March 2020)
Page range: 73 - 90
Received: 16 Apr 2019
Accepted: 26 Jan 2020
Journal Details
License
Format
Journal
eISSN
1804-1663
First Published
19 Feb 2010
Publication timeframe
4 times per year
Languages
English
Abstract

The purpose of this research is to examine the economic freedom (EF) along with its macroeconomic determinants impact on Foreign Direct Investment (FDI) inflow in South Asia, East Asia, Latin America, Middle East, and North Africa, Northern Europe, Southern Europe, Western Europe, Eastern Europe and Sub Saharan Africa. We use Heritage Foundation economic freedom index data over the period of 1999 to 2018 and employ the stepwise multi regression on variables of business freedom, government spending, tax burden, government integrity, property rights, investment freedom, trade freedom and monetary freedom. The results show that EF has a significant positive impact in South Asia, Latin America, East Asia, North Europe and West Europe. However, for the Middle East and North Africa, East European and South European economies EF has an insignificant influence on FDI inflow.

Keywords

JEL Classification

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