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Title:Foreign direct investment and structural reforms: evidence from Eastern Europe and Latin America PDF Logo
Authors:Campos, Nauro F.
Kinoshita, Yuko
Issue Date:2008
Series/Report no.:IZA Discussion Papers 3332
Abstract:This paper investigates the role of structural reforms - privatization, financial reform and trade liberalization 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.
Subjects:Privatization
financial reform
trade liberalization
foreign direct investment
Latin America
transition economies
JEL:H11
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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