<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The purpose of this research is to examine the economic freedom (EF) along with its macroeconomic determinants impact on Foreign Direct Investment (FDI) inflow in South Asia, East Asia, Latin America, Middle East, and North Africa, Northern Europe, Southern Europe, Western Europe, Eastern Europe and Sub Saharan Africa. We use Heritage Foundation economic freedom index data over the period of 1999 to 2018 and employ the stepwise multi regression on variables of business freedom, government spending, tax burden, government integrity, property rights, investment freedom, trade freedom and monetary freedom. The results show that EF has a significant positive impact in South Asia, Latin America, East Asia, North Europe and West Europe. However, for the Middle East and North Africa, East European and South European economies EF has an insignificant influence on FDI inflow.</p></abstract>

The purpose of this research is to examine the economic freedom (EF) along with its macroeconomic determinants impact on Foreign Direct Investment (FDI) inflow in South Asia, East Asia, Latin America, Middle East, and North Africa, Northern Europe, Southern Europe, Western Europe, Eastern Europe and Sub Saharan Africa. We use Heritage Foundation economic freedom index data over the period of 1999 to 2018 and employ the stepwise multi regression on variables of business freedom, government spending, tax burden, government integrity, property rights, investment freedom, trade freedom and monetary freedom. The results show that EF has a significant positive impact in South Asia, Latin America, East Asia, North Europe and West Europe. However, for the Middle East and North Africa, East European and South European economies EF has an insignificant influence on FDI inflow.

Economic Freedom and its Impact on Foreign Direct Investment: Global Overview

Institute of Regional and Agrarian Economics

Review of Economic Perspectives

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Economic Freedom and its Impact on Foreign Direct Investment: Global Overview"}

The purpose of this research is to examine the economic freedom (EF) along with its macroeconomic determinants impact on Foreign Direct Investment (FDI) inflow...

Economic Freedom and its Impact on Foreign Direct Investment: Global Overview

Published Online: May 11, 2020

Page range: 73 - 90

Received: Apr 16, 2019

Accepted: Jan 26, 2020

DOI: https://doi.org/10.2478/revecp-2020-0004

Keywords
Foreign Direct Investments, Economic Freedom, Economic Growth, Macroeconomic Factors

© 2020 Devesh Singh et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Economic Freedom and its Impact on Foreign Direct Investment: Global Overview

Published Online: May 11, 2020

Page range: 73 - 90

Received: Apr 16, 2019

Accepted: Jan 26, 2020

DOI: https://doi.org/10.2478/revecp-2020-0004

KeywordsForeign Direct Investments, Economic Freedom, Economic Growth, Macroeconomic Factors

© 2020 Devesh Singh et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Foreign Direct Investments, Economic Freedom, Economic Growth, Macroeconomic Factors