Democracy, governance, economic freedom, and foreign direct investment

• Autor(a) principal: Zimmermann, Clarice
• Data de Publicação: 2023
• Outros Autores: Reinhold, Cleber Aldo, Castro de Carvalho, Luciano, de Vasconcellos, Silvio Luis
• Tipo de documento: Artigo
• Idioma: por; eng
• Título da fonte: Internext
• Texto Completo: https://internext.espm.br/internext/article/view/653
• topic: Democracia; Governança; Liberdade econômica; Investimento Externo Direto.; Investimento Externo Direto; Democracy; Governance; Economic freedom; Foreign direct investment

Objective: To analyze how much democracy, economic freedom and governance influence the flow of direct external investments in countries, considering the Population Index and Gross Domestic Product (GDP) per capita as control variables. Method: Statistical analysis through structural equation modeling that made it possible to simultaneously analyze multiple variables in 144 countries on six continents, from 2008 to 2018. Main Results: It was confirmed that democracy, economic freedom, and governance influence the flow of direct external investments and how much each of them does so. Another finding is that the size of the population has a greater influence than the independent variables studied. Relevance / Originality: Previous studies have devoted themselves to analyzing the impact of one or other factors on the flow of direct external investments, but the results among the studies remain controversial. Theoretical / Methodological Contributions: The article used the method of modeling structural equations, which allowed us to analyze how much variables influence the flow of direct external investments. No articles were found that analyzed these variables together and how much each influenced the flow of direct external investments in the countries. Social Contributions / Contributions to the Management: Foreign direct investment contributes to the development of the countries that receive these investments, understanding which factors are most attractive to investors allows countries to adopt policies and develop more assertive actions.