1 / 11

A Clear Advantage: The Benefits of Transparency to Foreign Direct Investment

A Clear Advantage: The Benefits of Transparency to Foreign Direct Investment. By Elaine Shen and Mike Sliwinski. The Story of Vietnam. How does a country’s transparency influence the amount of FDI a country receives?. Hypothesis: increased transparency has a positive correlation to FDI

nonnie
Télécharger la présentation

A Clear Advantage: The Benefits of Transparency to Foreign Direct Investment

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. A Clear Advantage: The Benefits of Transparency to Foreign Direct Investment By Elaine Shen and Mike Sliwinski

  2. The Story of Vietnam

  3. How does a country’s transparency influence the amount of FDI a country receives? • Hypothesis: increased transparency has a positive correlation to FDI • Variables: HRV Index and FDI data • Methodology: regression analysis • Results: increasing transparency increases FDI • Theory: why transparency matters

  4. Hypothesis • Research Question: Does a country’s level of transparency affect the amount of FDI it receives? • Yes! • Strong positive relationship

  5. Factors Explanatory Variable (x) • Transparency • The HRV Index • Dependent Variable (y) • Foreign Direct Investment (BOP, constant USD)

  6. Methodology: Regressions • Controls • GDP (natural log) • GDP/capita (natural log) • GDP Growth rate (annual % change) • Exports (% GDP) • Trade Variable (imports+exports/GDP) • Real Interest Rate • Exchange Rate • Inflation (CPI) • Democracy • Natural resource dependency • Lagged FDI • Country fixed effects • Year fixed effects

  7. Greater transparency leads to greater FDI Results:

  8. Figure 1: Transparency and FDI (linear best fit)

  9. Table 1: Results

  10. But Why? • 3 Reasons • Decreases cost • Decreases risk • Investment management during crisis

  11. Conclusion • Increased transparency is positively correlated to increased FDI • Further research • Instrumental variables • Differences in differences • Significance: policy suggestions

More Related