The Role of Economic Freedom in the Relationship between Foreign Direct Investment and Economic Growth: Evidence from Former Socialist Countries

• 영문명: The Role of Economic Freedom in the Relationship between Foreign Direct Investment and Economic Growth: Evidence from Former Socialist Countries
• 발행기관: 세종대학교 경제통합연구소
• 저자명: Ochilov Shokhrukh Kasimov Ikboljon Xaldarov Zamon
• 간행물 정보: 『Journal of Economic Integration』제38권 제2호, 322~334쪽, 전체 13쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2023.06.30

영문 초록

This study investigates the role of economic freedom in attracting foreign direct investment (FDI) and its impact on economic growth in 15 former socialist countries from 2000 to 2021 through the Generalized Method of Moments estimation method. Our findings suggest that higher economic freedom helps countries attract additional foreign investment. Furthermore, we found that a one-unit increase in the economic freedom index increases the real gross domestic product per capita by 0.019%. The findings also reveal that a 1% increase in FDI leads to a 0.585% surge in real income per capita, whereas trade openness surges income by 1.24%. These results reveal that FDI has a positive impact on economic growth, suggesting that FDI is an important factor driving economic development in former socialist countries. This study also provides policy recommendations based on the findings, highlighting the importance of promoting free and healthy competition, transparency, accountability, and investment in education and infrastructure.

목차

I. Introduction

II. Literature Review

III. Data and Methodology

IV. Results and Discussions

V. Conclusion and Policy Recommendations

References

키워드

economic freedom foreign direct investment economic growth former socialist countries GMM panel data economic growth