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WHAT ATTRACTS FOREIGN DIRECT INVESTMENT: A CLOSER LOOK
Author(s) -
Dutta Nabamita,
Roy Sanjukta
Publication year - 2009
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/j.1468-0270.2009.01925.x
Subject(s) - foreign direct investment , economics , investment (military) , capital (architecture) , international economics , interest rate , monetary economics , business , international trade , macroeconomics , law , history , archaeology , politics , political science
It is rational to assume that minimal trade barriers (tariffs and quotas), a bigger trade sector, lower interest rate regulations, freer international capital market, lower credit and labour market regulations will make investment in a country more lucrative for foreign investors. We confirm this and show the prevalence of non‐linearity in the relationships.