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Determining the Effects of Factors on FDI in Global Crisis Period

Author

Listed:
  • Selahattin GURIS

    (Department of Econometrics, Marmara University, Istanbul, Turkey)

  • Irem SACAKLI SACILDI

    (Department of Econometrics, Marmara University, Istanbul, Turkey)

  • Elif GUNEREN GENC

    (Department of International Trade, Istanbul Commerce University, Istanbul, Turkey)

Abstract

The purpose of this study is to analyze factors affecting Foreign Direct Investment (FDI) in countries with a high rate of FDI from 2005 to 2011, by examining the effects of the 2008 crisis. A Panel Tobit model is estimated in order to see the effects on the whole period, and classical Tobit models for each year are estimated separately for the purpose of examining the effects prior to, after and during the crisis, in detail. In the Tobit models, estimated separately for each year, the labor rate and inflation rate variables that are significant in panel Tobit models are not found significant for any of the examined years. As the balance of current accounts is found to be significant both prior to and after the crisis, it can be said that the effect of this variable on FDI is not affected by the crisis. Although there are studies examining factors affecting the FDI in the crisis period, to the best of our knowledge this is the only study using panel Tobit and classical Tobit models to that end.

Suggested Citation

  • Selahattin GURIS & Irem SACAKLI SACILDI & Elif GUNEREN GENC, 2015. "Determining the Effects of Factors on FDI in Global Crisis Period," International Journal of Economics and Financial Issues, Econjournals, vol. 5(1), pages 1-10.
    • Handle: RePEc:eco:journ1:2015-01-01
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Cross sectional models; panel Tobit model; foreign direct investment;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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