Economic Policies and FDI Inflows to Emerging Market Economies

By Elif C. Arbatli. Social Science Research Network, 2011

125 citations recorded by the source corpus.

This paper investigates the determinants of FDI inflows to emerging market economies, concentrating on the effects of economic policies. The empirical analysis also addresses the role of external push factors and of political stability using a domestic conflict events database. The results suggest that lowering corporate tax rates and trade tariffs, adopting fixed or managed exchange rate policies and eliminating FDI related capital controls have played an important role. Domestic conflict events and political instability are found to have significant negative effects on FDI, which highlights the role of incluside policies to promote growth and avoid sudden stops of FDI inflows.

View Paper: https://www.semanticscholar.org/paper/fe89cab709a172a6f7196b219028763c4b8560a8

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Citations in the corpus

• Relationship between Institutional Factors and FDI Flows in Developing Countries: New Evidence from Dynamic Panel Estimation (2017, background): “…are selected through several studies in the literature on the determinants of FDI such as Fernandez-Arias (1996); Taylor and Sarno (1997); Milesi-Ferretti and Tille (2011); Arbatli (2011); Asiedu (2013); Fratzscher (2012) and Ahmed and Zlate (2014). is taken from a paper by Chinn and Ito (2006).”