Institutional determinants of foreign direct investment in Latin America: research methodology
Keywords:
Institutional determinants, methodology, foreign direct investment, model of regression, panel data, time seriesAbstract
The paper studies the methodology of economic research in the context of identifying the institutional determinants of foreign direct investment in Latin America. The author makes a comparative analysis of methodological approaches used in researches on this subject and finds methodological reasons for the differences in the results, based on different approaches to building models of regression. The study stresses the necessity of using statistical data provided by international institutions such as the International Bank for Reconstruction and Development, IMF, CEPAL, which often could be more trustworthy than national Statistical bureaus. The article determines the additional institutional factors appropriate for taking into consideration in further studies, including the level of intellectual property protection, quality of education, the risk of expropriation of property, the efficiency of the markets, the stability of governmental economic policy.References
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