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Economic reform, state capture, and international investment in transition economies

✍ Scribed by Nathan Jensen


Publisher
John Wiley and Sons
Year
2002
Tongue
English
Weight
45 KB
Volume
14
Category
Article
ISSN
0954-1748

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✦ Synopsis


Abstract

The inflows of foreign direct investment (FDI) in transition economies are affected by political factors. This paper examines the empirical effects of two factors: (i) the level of economic reform; and (ii) the level of ‘capture’ of the state by political and economic elites, on the level of FDI inflows using both OLS and Tobit models for 18 countries from 1993–97. Both of these factors have large and statistically significant effects on FDI inflows. Copyright © 2002 John Wiley & Sons, Ltd.