Foreign Direct Investment and The Ease of Doing Business

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dc.contributor.author Corcoran, Adrian
dc.contributor.author Gillanders, Robert
dc.date.accessioned 2012-09-03T14:18:19Z
dc.date.available 2012-09-03T14:18:19Z
dc.date.issued 2012-07
dc.identifier.uri http://hdl.handle.net/10197/3777
dc.description.abstract This paper examines the effect that a country’s business regulatory environment has on the amount of foreign direct investment it attracts. We use the World Bank’s Ease of Doing Business ranking to capture the costs that firms face when operating in a country. Several interesting results emerge. Firstly, the Doing Business rank is highly significant when included in a standard empirical FDI model estimated on data averaged over the period 2004-2009. Secondly, the significance of the overall Doing Business is driven by the Ease of Trading Across Borders component. We argue that this is a more intuitively appealing proxy for trade costs than the often used openness variable. The relationship does not seem to exist for the World’s poorest region, Sub-Saharan Africa, or for the OECD. Finally, we find no evidence that the ease of doing business of nearby countries has an effect on the FDI that a country gets in general. However, in terms of attracting FDI from the US, it helps to be near countries with good trade regulation and bad regulation in other respects. en
dc.description.sponsorship Not applicable en
dc.language.iso en en
dc.publisher University College Dublin. School of Economics en
dc.relation.ispartofseries UCD Centre for Economic Research Working Paper Series en
dc.relation.ispartofseries WP12/19 en
dc.relation.requires Economists Online Collection & RePEc en
dc.subject Foreign direct investment en
dc.subject Business regulation en
dc.subject.lcsh Investments, Foreign en
dc.subject.lcsh Trade regulation en
dc.title Foreign Direct Investment and The Ease of Doing Business en
dc.type Working Paper en
dc.internal.availability Full text available en
dc.internal.webversions http://www.ucd.ie/t4cms/WP12_19.pdf en
dc.status Not peer reviewed en
dc.neeo.contributor Corcoran|Adrian|aut|
dc.neeo.contributor Gillanders|Robert|aut|


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