An econometric analysis of selected determinants of foreign direct investment

ABSTRACT: The main focus of this thesis is to analyze the impact of some variable such as Inflation rate, GDP Growth, Financial Development and openness on Foreign Direct Investment (FDI), in selected emerging economics. The sample of countries includes Turkey, Argentina, India, Poland and Hungary. In this study Pooled Regression Analysis will be used to estimate the general effect of some economic variables such as Financial Development, Inflation Rate, Growth Rate of GDP and Openness on FDI based on the data of all countries in our sample. In addition, we will add several control variables as variables to the right side of our Foreign Direct Investment equation such as last year's FDI or last year Financial Development. At last, this study will present that how each economic variable will effect on Foreign Direct Investment; on the other hand this thesis will present the amount of effect of each economic variable on Foreign Direct Investment. Keywords: Foreign Direct Investment, Financial Development, Inflation Rate, GDP, Openness. …………………………………………………………………………………………………………………………