What is it about?
We analyzed how much democracy, economic freedom, and government influence the flow of direct external investments in countries, considering the Population Index and Gross Domestic Product (GDP) per capita as control variables.
Featured Image
Photo by Jonathan Borba on Unsplash
Why is it important?
Previous studies have devoted themselves to analyzing the impact of one or other factors on the flow of direct external investments, but the results remain controversial. This paper reveals that capital, represented by the flow of FDI, before assessing whether democratic environments, with good governance or economic freedom, evaluate the market potential concerning its size, both in terms of population and GDP, even if it means investing in countries with unsatisfactory democratic indices.
Perspectives
FDI contributes to developing the countries that receive investments. Understanding which factors are most attractive to investors allows countries to adopt policies and develop more assertive actions. Our study's relevance lies in quantifying the elements and enabling the development of new research that can further help understand the complex movement of capital between countries.
Dr Silvio L de Vasconcellos
Associacao Escola Superior de Propaganda e Marketing
Read the Original
This page is a summary of: Democracia, governança, liberdade econômica e investimento estrangeiro direto, Internext, April 2023, Escola Superior de Propaganda e Marketing (ESPM),
DOI: 10.18568/internext.v18i2.653.
You can read the full text:
Contributors
The following have contributed to this page
