Commercial Surveys

Commercial Surveys

Role of Countries’ Development level in Effect of doing Business Indicators on Foreign Direct Investment

Document Type : Original Article

Authors
negar jafari fesharaki 1
abbas memarnejad 2
shamseddin hosseini 3
kambiz kiani 3
1 economy, economy and management, islamic azad university science and technology branch Tehran, Tehran, Iran.
2 economy, management and economic department islamic azad university science and research branch , tehran, iran
3 , economy, management and economic department islamic azad university science and research branch , tehran, iran
10.22034/bs.2022.546363.2462
Abstract
Investment is one of the main component of aggregate demand in economy which plays a crucial role in the economic fluctuations and economic growth of each country So economist and policymakers focused on interpret of Investment behavior. One of the most important factors in the decision to invest in both domestic and foreign investment is the existence of a secure environment.in other words, the most important factors is the proper investment environment and what has been interpreted as the ease of doing business. The main goal of this study is to investigate the effect of indicators of ease of doing business and domestic investment on foreign direct investment in selected countries. For this purpose, based on the division of the World Bank, four groups of countries are considered by their income level, including low-income countries, lower middle-income countries, upper middle-income countries and high-income countries, and the effect of domestic investment and indicators of ease of doing business have been evaluated using a Panel data model. The result shows that the level of development of countries and their income influences the magnitude and effect of domestic private investment and indicators ease of doing business on FDI. In a low-income, lower middle income and high-income countries, the effect of investment on foreign direct investment is positive, and in the upper middle countries, this has a negative effect. Meanwhile, the effect of each indicator of ease of doing business on foreign investment varies depending on the income level of countries.
Keywords
Foreign Direct Investment / Ease of doing Business / Development
 
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Commercial Surveys
Volume 20, Issue 116 - Serial Number 116
November and December 2023
Pages 27-44

  • Receive Date 12 January 2022
  • Revise Date 27 February 2022
  • Accept Date 14 March 2022