| By: |
Campos, Nauro F. (Brunel University);
Kinoshita, Yuko (International Monetary Fund) |
| 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. |
| Keywords: |
privatization, financial reform, trade liberalization, foreign direct investment, Latin America, transition economies |
| JEL: |
H11 F21 O16 |
| Date: |
2008–02 |
| URL: |
http://d.repec.org/n?u=RePEc:iza:izadps:dp3332&r=fdg |