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Journals / Maliye Dergisi / 2021 / Sayı: 180

The Effect of Economic Freedom on Direct Investment Entry Mode: The Case of Developing Countries

Ekonomik Özgürlüğün Doğrudan Yabancı Yatırımların Giriş Şekli Üzerindeki Etkisi: Gelişmekte Olan Ülke Örneği

ASİYE TÜTÜNCÜ
EROL TEKİN
Pages
270–292
DOI
—
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

According to the results of the research, it has been determined that government spending, business freedom, monetary freedom and trade freedom, which are the sub-factors of economic freedom, have a significant and positive effect on greenfield investments while the variables of property rights, government integrity, tax burden, business freedom, monetary freedom, trade freedom and financial freedom have an effect on brownfield investments.

📌 3 Key Takeaways

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Objective & Hypothesis:The aim of this study is to investigate the impact of economic freedom on the entry mode of Foreign Direct Investment (FDI).
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Key Findings & Data:The study examines the data from 22 developing countries for the years 2005-2019 using the panel causality test.
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Conclusion & Impact:According to the results of the research, it has been determined that government spending, business freedom, monetary freedom and trade freedom, which are the sub-factors of economic freedom, have a significant and positive effect on greenfield investments while the variables of property rights, government integrity, tax burden, business freedom, monetary freedom, trade freedom and financial freedom have an effect on brownfield investments.
🔬Design:Research Article
📍Scope:2005-2019 Verileri
⚙️Variables:Domain Parameters

Abstract

The aim of this study is to investigate the impact of economic freedom on the entry mode of Foreign Direct Investment (FDI). The study examines the data from 22 developing countries for the years 2005-2019 using the panel causality test. According to the results of the research, it has been determined that government spending, business freedom, monetary freedom and trade freedom, which are the sub-factors of economic freedom, have a significant and positive effect on greenfield investments while the variables of property rights, government integrity, tax burden, business freedom, monetary freedom, trade freedom and financial freedom have an effect on brownfield investments. The results of the analysis show that the impact of government variables included in the sub-factors of the economic freedom index on the choice of FDI entry mode is dominant.

Özet

Bu çalışmanın amacı ekonomik özgürlüğün ev sahibi ülkelere yapılanDoğrudan Yabancı Yatırım (DYY) giriş şekli üzerindeki etkisini incelemektir.Çalışmada 22 gelişmekte olan ülkenin 2005-2019 yıllarına ait verileri panelnedensellik testi kullanılarak ele alınmıştır. Araştırma sonuçlarına göre,ekonomik özgürlük alt değişkenlerinden kamu harcamaları, iş özgürlüğü,parasal özgürlük ve ticari özgürlüğün yeşil alan yatırımları istatistikselolarak anlamlı etkilediği tespit edilmiştir. Bununla birlikte mülkiyet hakları,kamu bütünlüğü, vergi yükü, iş özgürlüğü, parasal özgürlük, ticari özgürlükve finansal özgürlük değişkenlerinin kahverengi alan yatırımlar üzerindeetkisi bulunmuştur. Analiz sonuçları ekonomik özgürlük endeksinin altkalemlerinde yer alan kamusal değişkenlerin DYY giriş şekli seçimiüzerindeki etkisinin baskın olduğunu göstermektedir.

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Cite This Article

TÜTÜNCÜ, A., TEKİN, E. (2021). The Effect of Economic Freedom on Direct Investment Entry Mode: The Case of Developing Countries. Maliye Dergisi, Sayı: 180, 270–292. https://ajindex.com/articles/357367

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