Determinants of FDI inflows in advanced economies: Does the quality of economic structures matter?

Konstantinos Dellis, David Sondermann and Isabel Vansteenkiste ()

No 2066, Working Paper Series from European Central Bank

Abstract: This paper investigates the role of economic structures as determinants of FDI inows. We expand on the existing literature by focusing on advanced economies, using a newly available measure of FDI which cleans the data from statistical artefacts, such as financial round tripping, and by relying on a wide variety of measures that proxy the quality of a country’s economic structures. Our results show that there is an empirical relation from the quality of a host country’s economic structures to FDI inflows. These results are robust to various economic specifications and are confirmed when restricting our sample to euro area countries only. JEL Classification: F21, F23, L51, O43

Keywords: economic structures; euro area countries; foreign direct investment; institutions (search for similar items in EconPapers)
Date: 2017-05
New Economics Papers: this item is included in nep-int
Note: 943715
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Citations: View citations in EconPapers (27)

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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:20172066

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