IMPACT OF LEGAL AND REGULATORY QUALITIES ON FDI INFLOW: A COMPARISON OF DEVELOPED AND DEVELOPING COUNTRIES

Year 2024, , 219 - 239, 20.12.2023

Güneş Topçu

https://doi.org/10.31671/doujournal.1301332

Abstract

The objective of this research is to determine the impact of legal and regulatory qualities on foreign direct investment (FDI) inflows and explore its impact in developed and developing countries, comparatively. The sample comprises data on FDI inflows from 66 countries, spanning the period 2008 to 2021. To estimate the regression parameters, the quantile regression with fixed effects model proposed by Machado and Santos Silva (2019) was employed. Additionally, the regression results were supported using random effects and fixed effects models with Driscoll-Kraay (1998) standard errors. The results of the quantile regression analysis reveal that legal and regulatory qualities have a positively significant effect on FDI inflows. This impact is greater in developing countries than in developed countries, and the discrepancy increases with higher FDI levels. These findings hold important policy implications for decision-makers. To attract FDI, particularly in developing countries, it is crucial to strengthen legal systems by safeguarding property rights, establishing contractual certainty, and implementing effective dispute resolution mechanisms. More so, efforts should be taken to reduce rent-seeking behavior and prevent powerful groups from receiving unfair advantages. Failure to address these issues may increase the risks and impede a country's economic development in the long run.

Keywords

FDI, Rule of Law, Developed Country, Developing Country, Quantile Regression

HUKUKİ VE YASAL DÜZENLEME NİTELİKLERİNİN DOĞRUDAN YATIRIMLARA ETKİSİ: GELİŞMİŞ VE GELİŞMEKTE OLAN ÜLKELERİN KARŞILAŞTIRILMASI

Abstract

Bu araştırmanın amacı, hukuki ve yasal düzenleme niteliklerinin doğrudan yabancı yatırım girişleri üzerindeki etkisini incelemek ve bu etkinin gelişmiş ve gelişmekte olan ülkeler arasında değişip değişmediğini araştırmaktır. Örneklem, 2008 ile 2021 yılları arasında 66 ülkenin doğrudan yabancı yatırım girişi verilerini içermektedir. Regresyon parametrelerini tahmin etmek için, Machado ve Santos Silva (2019) tarafından önerilen sabit etkiler kantil regresyon modeli kullanılmıştır. Ayrıca, regresyon sonuçları, Driscoll-Kraay (1998) standart hatalarıyla rassal etkiler ve sabit etkiler modelleri tahmin edilerek desteklenmiştir. Kantil regresyon analizi sonuçları, hukuki ve yasal düzenleme niteliklerinin doğrudan yabancı yatırım girişleri üzerinde önemli ve pozitif bir etkiye sahip olduğunu ortaya koymaktadır. Bu etki, gelişmekte olan ülkelerde gelişmiş ülkelere kıyasla daha yüksektir ve doğrudan yabancı yatırım düzeyi arttıkça bu fark daha da belirginleşmektedir. Bu bulgular, karar alıcılar için önemli politika önerileri sunmaktadır. Özellikle gelişmekte olan ülkelerde doğrudan yabancı yatırım girişlerini çekmek için mülkiyet haklarını koruma, sözleşme güvenliği sağlama ve etkili anlaşmazlık çözüm mekanizmalarını uygulama konularında hukuki sistemleri güçlendirmek son derece önemlidir. Ayrıca, rant arayışı davranışını azaltmak ve güçlü grupların haksız avantajlar elde etmesini engellemek için çaba sarf edilmelidir. Bu konuların ele alınmaması, uzun vadede ülkenin ekonomik gelişimini riske atabilir.

Keywords

Doğrudan Yabancı Yatırım, Hukukun Üstünlüğü, Gelişmiş Ülke, Gelişmekte Olan Ülke, Kantil Regresyon

Supporting Institution

Yoktur.

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