Institutional Determinants Of Sectoral FDI In Eastern European And Central Asian Countries : The Role Of Investment Climate And Democracy
Abstract
We study the determinants of the sectoral distribution of foreign direct investment (FDI) in Eastern Europe and Central Asia, focusing on the investment climate and state of democracy. Using a dynamic system generalized method of moments estimator, we examine twenty-one countries for the period 1994-2008. We find that when human capital is controlled for, the host country investment profile has a positive effect on agricultural FDI and the host country state of democracy positively affects agricultural and manufacturing FDI. In addition, services FDI is attracted by educated labor, whereas FDI to other sectors is attracted by cheap labor. Moreover, natural resource endowments have a positive impact on FDI in the sectors of agriculture and manufacturing.
Subject
Democratic Accountability
Institutional Determinants
Investment Profile
Sectoral FDI
Foreign Direct-investment
Real Exchange-rate
United-States
Tax Policy
Panel-Data
Corruption
Rates
Governance
Patterns
Decision
Demokratik Hesap
Kurumsal Belirleyicileri
Yatırım Profili
Sektörel DYY
Doğrudan Yabancı Yatırım
Reel Döviz Kuru
Birleşik Devletleri
Vergi Politikası
Panel Verisi
Rüşvet
Oranlar
Yönetim
Desenler
Karar
Institutional Determinants
Investment Profile
Sectoral FDI
Foreign Direct-investment
Real Exchange-rate
United-States
Tax Policy
Panel-Data
Corruption
Rates
Governance
Patterns
Decision
Demokratik Hesap
Kurumsal Belirleyicileri
Yatırım Profili
Sektörel DYY
Doğrudan Yabancı Yatırım
Reel Döviz Kuru
Birleşik Devletleri
Vergi Politikası
Panel Verisi
Rüşvet
Oranlar
Yönetim
Desenler
Karar
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