Innovative Solutions for Economic Growth: Exploring the Impact of Economic Freedoms on Foreign Direct Investment Attraction

IF 1.5 4区经济学 Q2 ECONOMICS

Economics & Politics Pub Date : 2023-05-27 DOI:10.2478/eoik-2023-0013

Anđelka Štilić, Andrea Mastilo, Krsto Vuković, Dejan Mastilo

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引用次数: 2

Abstract

Abstract Economic freedoms are essential for the growth and development of countries, but their distribution varies across nations, resulting in differences in economic growth. This study aims to explore the impact of economic freedoms on economic growth, measured by gross domestic product (GDP) per capita and foreign direct investment (FDI) inflow, by examining the influence of institutional quality. Economic freedom indicators were obtained from the 2022 report by the Heritage Foundation, and GDP per capita and FDI indicators were sourced from the World Bank report. This study employs multivariate regression analysis to investigate the relationship between economic freedoms and economic growth. The findings suggest that economic freedoms have a positive effect on both GDP per capita growth and FDI inflow. Government integrity was found to be the primary indicator for GDP per capita growth, while Business freedom was identified as the key factor in attracting FDI. The implications of these results are significant, as they can inform policy decisions aimed at improving the standard of living by increasing GDP per capita and creating employment opportunities through FDI.

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经济增长的创新解决方案:探讨经济自由对吸引外国直接投资的影响

经济自由对于国家的增长和发展至关重要，但经济自由在不同国家的分布不同，导致经济增长的差异。本研究旨在通过考察制度质量的影响，探讨经济自由对经济增长的影响，以人均国内生产总值(GDP)和外国直接投资(FDI)流入来衡量。经济自由度指标来源于美国传统基金会2022年报告，人均GDP和FDI指标来源于世界银行报告。本研究采用多元回归分析探讨经济自由度与经济成长的关系。研究结果表明，经济自由对人均GDP增长和外国直接投资流入都有积极影响。政府廉洁被认为是人均GDP增长的主要指标，而商业自由被认为是吸引外国直接投资的关键因素。这些结果的影响是重大的，因为它们可以为旨在通过增加人均国内生产总值和通过外国直接投资创造就业机会来提高生活水平的政策决定提供信息。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Economics & Politics Multiple-

CiteScore

2.40

自引率

10.00%

发文量

期刊介绍： Economics & Politics focuses on analytical political economy, broadly defined as the study of economic and political phenomena and policy in models that include political processes, institutions and markets. The journal is the source for innovative theoretical and empirical work on the intersection of politics and economics, at both domestic and international levels, and aims to promote new approaches on how these forces interact to affect political outcomes and policy choices, economic performance and societal welfare. Economics & Politics is a vital source of information for economists, academics and students, providing: - Analytical political economics - International scholarship - Accessible & thought-provoking articles - Creative inter-disciplinary analysis