Foreign Direct Investment and Structural Reforms; Evidence From Eastern Europe and Latin America

This paper investigates the role of structural reforms -financial reforms, trade liberalization, and privatization- as determinants of FDI inflows based on newly constructed dataset on structural reforms for 19 Latin American and 25 Eastern European countries between 1989 and 2004. Our main finding is a strong empirical relationship from reforms to FDI, in particular, from financial liberalization and privatization. These results are robust to different measures of reforms, split samples, and potential endogeneity and omitted variables biases.

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Year of publication:	2008-01-01
Authors:	Kinoshita, Yuko ; Campos, Nauro F.
Institutions:	International Monetary Fund (IMF)
Subject:	Privatization \| Foreign direct investment \| Latin America \| Transition economies \| Central and Eastern Europe \| fdi \| financial sector \| financial reform \| direct investment \| host country \| foreign investors \| financial liberalization \| market size \| foreign investment \| financial markets \| financial market \| bond \| financial globalization \| foreign capital \| financial reforms \| investment decisions \| financial intermediation \| direct investment inflows \| foreign ownership \| foreign banks \| liquid liabilities \| macroeconomic stability \| foreign buyer \| financial sector development \| financial market development \| financial system \| stabilization programs \| financial intermediaries \| international trade \| industrial countries \| horizontal linkages \| international investment \| financial sector liberalization \| foreign investor \| technology spillovers \| financial institutions \| multinational enterprises \| foreign investment flows \| financial systems \| manufacturing sector \| credit markets \| financial structure \| multinational enterprise \| foreign direct investors \| international financial statistics \| stock market \| international country risk guide \| financial economics \| stock markets \| investment climate \| financial assets \| host countries \| direct foreign investment \| international investors \| bond estimator

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Extent:	application/pdf
Series:	IMF Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	The text is part of a series IMF Working Papers Number 08/26 3 pages long
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005826274