impact of government policies and investment agreements on fdi ...
impact of government policies and investment agreements on fdi ...
impact of government policies and investment agreements on fdi ...
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
that healthy ec<strong>on</strong>omies have a high “churn rate” <str<strong>on</strong>g>of</str<strong>on</strong>g> firms, <str<strong>on</strong>g>and</str<strong>on</strong>g> research dem<strong>on</strong>strates a<br />
str<strong>on</strong>g positive link between entry <str<strong>on</strong>g>and</str<strong>on</strong>g> exit (Love 1996) 12 . The results arrived at by<br />
Friedman <str<strong>on</strong>g>and</str<strong>on</strong>g> others (2000) also suggest that very <str<strong>on</strong>g>of</str<strong>on</strong>g>ten it is the arbitrary array <str<strong>on</strong>g>of</str<strong>on</strong>g><br />
obstacles to starting <str<strong>on</strong>g>and</str<strong>on</strong>g> running business that are the more significant barriers to foreign<br />
investors.<br />
Table 7 :<br />
Impact <str<strong>on</strong>g>of</str<strong>on</strong>g> Selective Government Policies <str<strong>on</strong>g>and</str<strong>on</strong>g> Investment Agreements <strong>on</strong><br />
Aggregate FDI: Dependent Variable: Log <str<strong>on</strong>g>of</str<strong>on</strong>g> Aggregate FDI Inflows<br />
Explanatory variables 1 2 3 4 5<br />
MKTSIZE 0.48***<br />
(2.78)<br />
0.37***<br />
(2.14)<br />
0.34**<br />
(2.02)<br />
0.37**<br />
(2.17)<br />
0.44**<br />
(2.62)<br />
GRTHMKT -0.002<br />
(-0.45)<br />
0.004<br />
(0.65)<br />
0.001<br />
(0.17)<br />
0.005<br />
(0.07)<br />
0.003<br />
(0.49)<br />
COSTLB -0.04***<br />
(-4.61)<br />
-0.03***<br />
(-3.34)<br />
-0.02**<br />
(-1.83)<br />
-0.02***<br />
(-2.82)<br />
-0.03***<br />
(-3.07)<br />
PDTYLB 0.03***<br />
(4.69)<br />
0.03***<br />
(4.03)<br />
0.02**<br />
(2.09)<br />
0.02***<br />
(3.26)<br />
0.03***<br />
(3.54)<br />
EDU 0.07***<br />
(7.97)<br />
0.06***<br />
(5.18)<br />
0.04***<br />
(3.51)<br />
0.05***<br />
(4.01)<br />
0.06***<br />
(4.39)<br />
EXRATE -0.004<br />
(-0.03)<br />
-0.006<br />
(-0.43)<br />
-0.001<br />
(-0.86)<br />
-0.007<br />
(-0.53)<br />
-0.003<br />
(-0.27)<br />
EXTDEBT -0.30***<br />
(-3.43)<br />
-0.22***<br />
(-2.54)<br />
-0.21**<br />
(-2.07)<br />
-0.20**<br />
(-2.14)<br />
-0.21**<br />
(-2.27)<br />
T&C -0.47<br />
(-0.30)<br />
-0.24<br />
(-0.16)<br />
0.13<br />
(0.09)<br />
0.04<br />
(0.03)<br />
0.21<br />
(0.15)<br />
ELECT 0.001***<br />
(5.96)<br />
0.001***<br />
(6.06)<br />
0.001***<br />
(4.67)<br />
0.001***<br />
(4.68)<br />
0.001***<br />
(3.66)<br />
LDRATE 0.0001<br />
(0.59)<br />
0.0002<br />
(0.90)<br />
0.0009<br />
(0.28)<br />
0.0001<br />
(0.57)<br />
0.0002<br />
(0.03)<br />
EXVOLATILITY -0.003<br />
(-1.00)<br />
-0.006<br />
(-0.43)<br />
-0.008<br />
(-0.11)<br />
-0.009<br />
(-0.12)<br />
-0.003<br />
(-0.54)<br />
BUDGETDEF -0.002<br />
(-0.35)<br />
-0.005<br />
(-0.78)<br />
-0.003<br />
(-0.66)<br />
-0.005<br />
(-0.05)<br />
-0.009<br />
(-0.39)<br />
TARIFF -0.03***<br />
(-3.03)<br />
-0.01***<br />
(-3.51)<br />
-0.02**<br />
(-2.16)<br />
-0.01**<br />
(-2.48)<br />
REST 0.13***<br />
(4.00)<br />
0.11***<br />
(3.38)<br />
0.10***<br />
(3.17)<br />
0.09***<br />
(2.91)<br />
INCENTIVES 0.25<br />
(0.16)<br />
0.43<br />
(0.27)<br />
0.40<br />
(0.28)<br />
0.45<br />
(0.60)<br />
APEC 0.59**<br />
-<br />
(2.39)<br />
ASEAN -0.83<br />
(-0.66)<br />
BIT 0.09***<br />
(2.76)<br />
12<br />
Entry barriers can also become exit barriers (World Bank 2003).<br />
27
Change language