five

The negative effect of regulatory divergence on foreign direct investment

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Organisation for Economic Co-operation and Development2026-04-11 收录
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The determinants of foreign direct investment (FDI) are explored with gravity models, using a Poisson estimator and a linear estimator, both with fixed effects. The heterogeneity of product market regulations has a large and robust impact on cross-border investment: a reduction of regulatory divergence by one fifth could increase FDI by about 15%....
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