Relationship between financial crisis and foreign direct investment in developing countries using semiparametric regression approach; [Finansu krizės ir tiesioginiuų užsienio investicijuų ryšio besivystančiose šalyse nustatymas taikant semiparametrinį regresijos modelį]

Paper Details

Authors:

DOI: 10.3846/jbem.2010.02

Journal: Journal of Business Economics and Management

Year: 2010

Publisher: Vilnius Gedminas Technical University

Document Type: Article

Open Access: All Open Access; Gold Open Access

Cited by: 50

Abstract

This paper analyzes whether and to what extent the inflow of FDI is affected before and after the occurence of a financial crisis in developing countries. The paper uses a semiparametric Generalized Partial Linear Models (GPLM) regression approach to check the appropriateness and effectiveness of financial crisis in the FDI regression model. The results indicate that FDI inflows decrease in the years after a financial crisis and an upturn in FDI inflows the year before a financial crisis hit the country. © Vilnius Gediminas Technical University, 2010.

Keywords

Developing countries; Financial crisis; Foreign direct investment; Generalized partial linear models (gplm); Semiparametric regression approach

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