Effects of Political and Socio-Economic Indicators on Foreign Direct Investments: Stochastic Frontier Analysis
Abstract
In this framework, we model economic factors affecting foreign direct investments together with social and political factors. The model includes economic freedom index, openness rate, real effective exchange rate, labor force population, gross domestic product, the commodity price, which reflects global commodity costs, internet users in population that pictures infrastructure level of economy, Gross Domestic Product deflator for inflation rate besides democracy index to measure the influence of social and political indicators. The purpose of working with these models is to determine the influence of economic, social and political indicators on foreign direct investment of selected countries. Stochastic frontier analysis was used in the implementation to achieve the objectives of the study. Proposals for policy implication have been made in the framework of foreign direct investments in order to enable the countries to take advantage of their potential investments and to increase this potential.
Keywords
Stochastic Frontier Analysis,Efficiency,Foreign Direct Investments,Political,Socio Economic Indices
Kaynakça
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