Does a country’s business regulatory environment affect its attractiveness to FDI? Empirical evidence from Central and Southeast European countries

TitleDoes a country’s business regulatory environment affect its attractiveness to FDI? Empirical evidence from Central and Southeast European countries
Publication TypeJournal Article
Year of Publication2019
Date Published12 /2019
JournalEASTERN JOURNAL OF EUROPEAN STUDIES
VolumeVolume 10
IssueIssue 2
Pagination89 - 105
Type of ArticleJournal article
Publication Languageenglish
AuthorsGanić, M, Hrnjic, M
PublisherCentre for European Studies
ISSN Numbere-ISSN: 2068-6633 | ISSN: 2068-651X
Keywordsbusiness regulatory environment, FDI, Mean Group (MG) estimator, the OLI paradigm, transition countries
Abstract

The paper squarely concentrates on an examination of the relationship between a country’s business regulatory environment and the inward stock of foreign direct
investment (FDI) in fifteen selected countries of Central Eastern and Southeast Europe by using a Mean Group (MG) estimator. The paper found no evidence that
a country’s business regulatory environment is a statistically significant predictor of FDI neither in Central Eastern European nor in Southeast European countries.
However, the study’s findings recommend that a further increase in FDI in both regions can be achieved by further economic growth, political stability, European
Union integration and reduction costs of business regulations.

Original PublicationDoes a country's business regulatory environment affect its attractiveness to FDI? Empirical evidence from Central and Southeast European countries
Refereed DesignationDoes Not Apply