THE RESPONSIBILITY OF INVESTMENT CLIMATE AND STATE OF DEMOCRACY TO THE DETERMINANTS OF SECTORAL FDI IN EASTERN EUROPEAN AND CENTRAL ASIAN COUNTRIES: A QUANTITATIVE ANALYSIS USING A DYNAMIC SYSTEM GENERALIZED METHOD OF MOMENTS ESTIMATOR, FOR THE PERIOD 1994-2018

Dr. Sarmita Guha Ray
2019 Zenodo  
In order to study the responsibility of investment climate and state of democracy to the determinants of sectoral distribution of Foreign Direct Investment (FDI), this study attempts to examine the institutional determinants of the sectoral distribution of FDI in Eastern Europe and Central Asia, focusing on the investment climate and state of democracy. Using a dynamic system generalized method of moments estimator, the study examine twenty-one countries for the period 1994–2018. The analysis
more » ... these quantitative findings is that when human capital is controlled for, the host country investment profile has a positive effect on agricultural FDI and the host country state of democracy positively affects agricultural and manufacturing FDI. In addition, services FDI is attracted by educated labor, whereas FDI to other sectors is attracted by cheap labor. Moreover, natural resource endowments have a positive impact on FDI in the sectors of agriculture and manufacturing.
doi:10.5281/zenodo.2573132 fatcat:btametohrnbtzlbv2edeljvn5u