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Foreign Direct Investments and Economic Freedom in OECD Countries

Yıl 2018, Cilt: 4 Sayı: 4, 51 - 59, 01.12.2018

Öz

The aim of this paper is to investigate the link between economic freedom (EFI) and foreign direct investments (GFC) in the case of 34 OECD countries. The annual panel data are collected in the time-span between 1997 and 2016. The results of linear static and dynamic panel data estimators suggest a positive link between EFI and FDI suggesting that economic freedom tends to contribute significantly to the inflow of foreign direct investments. The findings of linear dynamic panel data estimators suggest also the positive link between the variables of interest indicating that the estimation issues assigned with linear static panel data estimator tend to overestimate the impact of EFI on FDI. With regard to Granger causality test, the results outlined a bidirectional causal relationship between EFI and GFC suggesting that EFI tends to attract the foreign direct investors but also that the country with higher FDI results in the rise in economic freedom. At last, ARDL model suggests a positive link between the variables of interest but only in the short-run, assuming that policy makers need to propose the necessary strategies that will stimulate not only economic freedom but also monetary policy and financial development as well as to ease the business activities in the country in order to increase the inflow of FDI

Kaynakça

  • Azman-Saini, W.N.W., Baharumshah, A.Z. and Law, S.H. (2010). Foreign Direct Investment, Economic Freedom and Economic Growth: International Evidence, Economic Modelling, Vol. 27, pp. 1079-1089.
  • Baum, C.F. (2009). Instrumental variables and panel data methods in economics and finance, Retrieved from: http://fmwww.bc.edu/GStat/docs/StataIV.pdf.
  • Dag, M., Kizilkaya, O., and Demez, S. (2018). Samaritan Çıkmazı Bağlamında Dış Yardımların Ekonomik Büyümeye Etkisinin İncelenmesi: Ampirik Bir Analiz, Maliye Araştırmaları Dergisi, Vol.4, No. 1, pp. 17-25.
  • Dawson, J.W. (2003). Causality in the Freedom-Growth Relationship.European Journal of Political Economy, Vol. 19, pp. 479-495.
  • Heckelman, J.C. (2000). Economic Freedom and Economic Growth: A Short-Run Causal Investigation, Journal of Applied Economics, pp. 71-91.
  • Hossain, M.S. (2016). Foreign Direct Investment, Economic Freedom and Economic Growth: Evidence from Developing Countries. International Journal of Economics and Finance, Vol. 8, No. 11, pp. 200-214.
  • Kapuria-Foreman, V. (2007). Economic Freedom and Foreign Direct Investment in Developing Countries.The Journal of Developing Areas, Vol. 41, No. 1, pp. 143-154.
  • Lopez, L. and Weber, S. (2017). Testing for Granger Causality in Panel Data. Online article, source: https://www.unine.ch/files/live/sites/irene/files/shared/documents/Publications/W orking%20papers/2017/WP17-03_V2.pdf.
  • Moussa, M., Caha, H., and Karagoz, M. (2016). Review of Economic Freedom Impact on FDI: New Evidence from Fragile and Conflict Countries. Procedia Economics and Finance, Vol. 38, pp. 163-173.
  • Muslija, A., Satrovic, E. and Unver Erbas, C, (2017). Panel Analysis of Tourism -Economic Growth Nexus, International Journal of Economic Studies, Vol. 3(4), pp. 535-545.
  • Ozcan, C.C., Aslan, M. and Nazlioglu, S. (2017). Economic Freedom, Economic Growth and International Tourism for Post-Communist (Transition) Countries: A Panel Causality Analysis. Theoretical and Applied Economics, Vol. XXIV, pp. 75-98.
  • Rajapakse, C.R. (2016). The Relationship between Foreign Direct Investment and Tourism Development: Evidence from Sri Lanka. International Journal of Research in Economics and Social Sciences, Vol. 6(5), pp. 183-193.
  • Sambharya, R. and Rasheed, A. (2015). Does Economic Freedom in Host Countries Lead to Increase Foreign Direct Investment? Competitiveness Review, Vol. 25 (1), pp. 2-24.
  • Satrovic, E. and Sehic, E. (2015). Composite Index for Quality of Life in Municipalities in Federation of Bosnia and Herzegovina, CEEOL (Central and Eastern European Online Library) EBSCO, ISBN 978-9926-410-07-0, Vol. CLXIV, No. 6, pp. 275-289.
  • Satrovic, E. (2017). Financial Development and Human Capital in Turkey: ARDL Approach, Cappadocia Academic Review, Vol. 1, No. 2, pp. 1-15.
  • Satrovic, E. (2018a). Merits of Life Insurance, Munich: GRIN Verlag.
  • Satrovic, E. (2018b). The Human Development Relies on Renewable Energy: Evidence from Turkey, 3rd International Energy & Engineering, Book of Proceedings, Gaziantep, Turkey, pp. 19-27.
  • Satrovic, E. and Muslija, A. (2017). Foreign Direct Investments and Tourism: Empirical Evidence from Turkey, ICPESS Proceedings, Vol. 2, pp. 88-100.
  • Satrovic, E. and Muslija, A. (2018). Causality Relationship between Foreign Direct Investment and Tourism. International Journal of Economics and Administrative Studies, Vol. 22, pp. 65-76.
  • Somun-Kapetanovic, R., Resic, E. and Satrovic, E. (2016). Panel Analysis of Relationship between Financial Development and Economic Growth, 8th International Conference of School of Economics and Business Sarajevo, Conference Proceedings, ISSN 2490- 3620, pp. 247-262.
  • Sothan, S. (2017). Causality between Foreign Direct Investment and Economic Growth for Cambodia. Cogent Economics & Finance, Vol. 5, pp. 1-13.
  • The World Bank (2017). World Development Indicators.
  • Yazdi, S.K., Nateghian, N. and Rezaie, N.S. (2017). The Causality Relationships between Tourism Development and Foreign Direct Investment: An Empirical Study in EU Countries. Journal of Policy Research in Tourism, Leisure and Events, Vol. 9, pp. 1- 18.

Foreign Direct Investments and Economic Freedom in OECD Countries

Yıl 2018, Cilt: 4 Sayı: 4, 51 - 59, 01.12.2018

Öz

Kaynakça

  • Azman-Saini, W.N.W., Baharumshah, A.Z. and Law, S.H. (2010). Foreign Direct Investment, Economic Freedom and Economic Growth: International Evidence, Economic Modelling, Vol. 27, pp. 1079-1089.
  • Baum, C.F. (2009). Instrumental variables and panel data methods in economics and finance, Retrieved from: http://fmwww.bc.edu/GStat/docs/StataIV.pdf.
  • Dag, M., Kizilkaya, O., and Demez, S. (2018). Samaritan Çıkmazı Bağlamında Dış Yardımların Ekonomik Büyümeye Etkisinin İncelenmesi: Ampirik Bir Analiz, Maliye Araştırmaları Dergisi, Vol.4, No. 1, pp. 17-25.
  • Dawson, J.W. (2003). Causality in the Freedom-Growth Relationship.European Journal of Political Economy, Vol. 19, pp. 479-495.
  • Heckelman, J.C. (2000). Economic Freedom and Economic Growth: A Short-Run Causal Investigation, Journal of Applied Economics, pp. 71-91.
  • Hossain, M.S. (2016). Foreign Direct Investment, Economic Freedom and Economic Growth: Evidence from Developing Countries. International Journal of Economics and Finance, Vol. 8, No. 11, pp. 200-214.
  • Kapuria-Foreman, V. (2007). Economic Freedom and Foreign Direct Investment in Developing Countries.The Journal of Developing Areas, Vol. 41, No. 1, pp. 143-154.
  • Lopez, L. and Weber, S. (2017). Testing for Granger Causality in Panel Data. Online article, source: https://www.unine.ch/files/live/sites/irene/files/shared/documents/Publications/W orking%20papers/2017/WP17-03_V2.pdf.
  • Moussa, M., Caha, H., and Karagoz, M. (2016). Review of Economic Freedom Impact on FDI: New Evidence from Fragile and Conflict Countries. Procedia Economics and Finance, Vol. 38, pp. 163-173.
  • Muslija, A., Satrovic, E. and Unver Erbas, C, (2017). Panel Analysis of Tourism -Economic Growth Nexus, International Journal of Economic Studies, Vol. 3(4), pp. 535-545.
  • Ozcan, C.C., Aslan, M. and Nazlioglu, S. (2017). Economic Freedom, Economic Growth and International Tourism for Post-Communist (Transition) Countries: A Panel Causality Analysis. Theoretical and Applied Economics, Vol. XXIV, pp. 75-98.
  • Rajapakse, C.R. (2016). The Relationship between Foreign Direct Investment and Tourism Development: Evidence from Sri Lanka. International Journal of Research in Economics and Social Sciences, Vol. 6(5), pp. 183-193.
  • Sambharya, R. and Rasheed, A. (2015). Does Economic Freedom in Host Countries Lead to Increase Foreign Direct Investment? Competitiveness Review, Vol. 25 (1), pp. 2-24.
  • Satrovic, E. and Sehic, E. (2015). Composite Index for Quality of Life in Municipalities in Federation of Bosnia and Herzegovina, CEEOL (Central and Eastern European Online Library) EBSCO, ISBN 978-9926-410-07-0, Vol. CLXIV, No. 6, pp. 275-289.
  • Satrovic, E. (2017). Financial Development and Human Capital in Turkey: ARDL Approach, Cappadocia Academic Review, Vol. 1, No. 2, pp. 1-15.
  • Satrovic, E. (2018a). Merits of Life Insurance, Munich: GRIN Verlag.
  • Satrovic, E. (2018b). The Human Development Relies on Renewable Energy: Evidence from Turkey, 3rd International Energy & Engineering, Book of Proceedings, Gaziantep, Turkey, pp. 19-27.
  • Satrovic, E. and Muslija, A. (2017). Foreign Direct Investments and Tourism: Empirical Evidence from Turkey, ICPESS Proceedings, Vol. 2, pp. 88-100.
  • Satrovic, E. and Muslija, A. (2018). Causality Relationship between Foreign Direct Investment and Tourism. International Journal of Economics and Administrative Studies, Vol. 22, pp. 65-76.
  • Somun-Kapetanovic, R., Resic, E. and Satrovic, E. (2016). Panel Analysis of Relationship between Financial Development and Economic Growth, 8th International Conference of School of Economics and Business Sarajevo, Conference Proceedings, ISSN 2490- 3620, pp. 247-262.
  • Sothan, S. (2017). Causality between Foreign Direct Investment and Economic Growth for Cambodia. Cogent Economics & Finance, Vol. 5, pp. 1-13.
  • The World Bank (2017). World Development Indicators.
  • Yazdi, S.K., Nateghian, N. and Rezaie, N.S. (2017). The Causality Relationships between Tourism Development and Foreign Direct Investment: An Empirical Study in EU Countries. Journal of Policy Research in Tourism, Leisure and Events, Vol. 9, pp. 1- 18.
Toplam 23 adet kaynakça vardır.

Ayrıntılar

Birincil Dil İngilizce
Bölüm Research Article
Yazarlar

Adnan Muslıja Bu kişi benim

Yayımlanma Tarihi 1 Aralık 2018
Yayımlandığı Sayı Yıl 2018 Cilt: 4 Sayı: 4

Kaynak Göster

APA Muslıja, A. (2018). Foreign Direct Investments and Economic Freedom in OECD Countries. Uluslararası Ekonomik Araştırmalar Dergisi, 4(4), 51-59.
AMA Muslıja A. Foreign Direct Investments and Economic Freedom in OECD Countries. UEAD. Aralık 2018;4(4):51-59.
Chicago Muslıja, Adnan. “Foreign Direct Investments and Economic Freedom in OECD Countries”. Uluslararası Ekonomik Araştırmalar Dergisi 4, sy. 4 (Aralık 2018): 51-59.
EndNote Muslıja A (01 Aralık 2018) Foreign Direct Investments and Economic Freedom in OECD Countries. Uluslararası Ekonomik Araştırmalar Dergisi 4 4 51–59.
IEEE A. Muslıja, “Foreign Direct Investments and Economic Freedom in OECD Countries”, UEAD, c. 4, sy. 4, ss. 51–59, 2018.
ISNAD Muslıja, Adnan. “Foreign Direct Investments and Economic Freedom in OECD Countries”. Uluslararası Ekonomik Araştırmalar Dergisi 4/4 (Aralık 2018), 51-59.
JAMA Muslıja A. Foreign Direct Investments and Economic Freedom in OECD Countries. UEAD. 2018;4:51–59.
MLA Muslıja, Adnan. “Foreign Direct Investments and Economic Freedom in OECD Countries”. Uluslararası Ekonomik Araştırmalar Dergisi, c. 4, sy. 4, 2018, ss. 51-59.
Vancouver Muslıja A. Foreign Direct Investments and Economic Freedom in OECD Countries. UEAD. 2018;4(4):51-9.