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On the Determinants of Foreign Capital Flows - DAAD partnership ...

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Figure 5.3 Geographical distribution <strong>of</strong> FDI in Mauritius from 2001-2008<br />

Overall from 2004 till today, <strong>the</strong>re has been an increase in <strong>the</strong> number <strong>of</strong> <strong>of</strong>fshore<br />

companies <strong>of</strong>fering financial services, thus a considerable increase in terms <strong>of</strong> inflows<br />

coming from <strong>the</strong> “financial intermediation” and business sectors.<br />

5.2 ECONOMETRIC ANALYSIS<br />

MULTIPLE REGRESSION<br />

For <strong>the</strong> purpose <strong>of</strong> <strong>the</strong> multiple regression, Equ3 from Chapter 4 will be used as follows:<br />

LFDIt = β0 + β1LGDPt + β2LOPENt + β3LINVt + β4LPROt + β5LRERt + εt<br />

, which is derived from <strong>the</strong> model that FDI = f (GDP, OPEN, INV, PRO, RER).<br />

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