RELATIONSHIP BETWEEN FINANCIAL CRISIS AND FOREIGN DIRECT INVESTMENT IN DEVELOPING COUNTRIES USING SEMIPARAMETRIC REGRESSION APPROACH


Ucal M., Özcan K. M. , BİLGİN M. H. , Mungo J.

JOURNAL OF BUSINESS ECONOMICS AND MANAGEMENT, vol.11, no.1, pp.20-33, 2010 (Peer-Reviewed Journal) identifier identifier

  • Publication Type: Article / Article
  • Volume: 11 Issue: 1
  • Publication Date: 2010
  • Doi Number: 10.3846/jbem.2010.02
  • Journal Name: JOURNAL OF BUSINESS ECONOMICS AND MANAGEMENT
  • Journal Indexes: Social Sciences Citation Index, Scopus
  • Page Numbers: pp.20-33
  • Keywords: Semiparametric regression approach, Generalized Partial Linear Models (GPLM), financial crisis, foreign direct investment, developing countries, GENERALIZED LINEAR-MODELS, ECONOMIC-GROWTH, FDI, DETERMINANTS, LIKELIHOOD, INFERENCE, CURRENCY

Abstract

This paper analyzes whether and to what extent the inflow of FDI is affected before and after the occurence of a financial crisis in developing countries. The paper uses a semiparametric Generalized Partial Linear Models (GPLM) regression approach to check the appropriateness and effectiveness of financial crisis in the FDI regression model. The results indicate that FDI inflows decrease in the years after a financial crisis and an upturn in FDI inflows the year before a financial crisis hit the country.