The Mojo, Dodgy, And Dingy Dominance of Domestic Deeds on Foreign Direct Investment in Emerging and Transition Economies

Abstract

Insufficiencies of empirical research were found regarding the flow of Foreign Direct Investment (FDI) to Emerging and Transition Economics (ETEs) as compared to other economies.  This study was designed to analyst domestic deeds that positively, negatively, and horridly affected the flow of FDI to ETEs and determine if they were the same for all ETEs.  The results paralleled existing FDI literature including extensive and established theories.  First, bivariate and multiple regressions analysis were conducted to determine whether ETEs domestic deeds (political stability, domestic credit, level of GDP-ETEs, level of corruption, and availability of mineral resources) significantly impact on the inflow of FDI to their countries. The correlation amongst GDP and FDI was significant (r =.91, p < .01), political stability was significant (r =-.23, p <.05), and availability of domestic credit was significant (r =.27, p < .05). Additionally, analysis on regional deeds variables (telephone lines and RI) revealed that telephone lines was a robust predictor of FDI (ß = .38, p < .05) and RI (ß = .57, p < .05).

Keywords: : Emerging Economies, Domestic Deeds on Foreign Investment, Foreign Direct Investments, Sam Agbi, Transition Economies, and African Emerging Economies.


Article Review Status: Published

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