Abstract (Translated):
This study analyzes the impact of the World Uncertainty Index (WUI) and other determinants on foreign direct investment (FDI) flows in APEC economies during the 2000-2020 period. To this end, a mean group panel model was developed, which allows for heterogeneous slope coefficients, cross-sectional dependence, and nonstationary series. The results demonstrate a negative relationship between FDI and uncertainty, and a positive one with the rest of the variables. The results highlight the relevance of macroeconomic stability and trade integration for attracting FDI, especially in high-uncertainty contexts such as those observed in APEC.
