FDI determinants in developing countries: a firm-level analysis

• Tipo: Artigo em Revista Científica Internacional
• Data: 2025-02-15

Autores

Cerdeira, Jorge (Autor) FLUP; Fortuna, Natércia (Autor) FEP

Revista

Título: Review of Development Economics

ISSN: 1363-6669

Editora: Wiley

Indexação

ISI Web of Knowledge - 0 Citações

Scopus - 0 Citações

ProQuest

Clarivate Analytics

Current Contents

Econlit

Outras Informações

ID Authenticus: P-018-3VY

DOI: 10.1111/rode.13206

Abstract (EN): FForeign direct investment (FDI) has been an important driver of economic growth in developing countries. Between 2005 and 2017, FDI grew significantly in developing countries as the corresponding global growth rate of FDI inflows is around 32 percentage points higher than the world growth rate. The purpose of this paper is to analyze FDI determinants at the firm level in developing countries. Using a sample of 96,826 firms from 125 countries between 2005 and 2017, we adopt a fractional probit regression with endogenous covariates, a more suitable estimation method for addressing the FDI variable. The micro-level results show that exports, investment, and human capital have a statistically positive impact on FDI inflows, while credit barriers and taxes have a negative effect. Also, market size and resources foster FDI, whereas inflation and environmental emissions lower foreign investment levels. This study demonstrates that governments wishing to attract FDI should adopt a variety of policies, including the promotion of international trade and measures that boost investment and human capital in firms and ease the access to credit.

Idioma: Inglês

Tipo (Avaliação Docente): Científica

Notas: First published: 15 February 2025. Early View: Online Version of Record before inclusion in an issue

Nº de páginas: 13