Arbeitspapier
Determinants of FDI inflows into the Baltic countries: Empirical evidence from a gravity model
The article analyzes FDI inflows into Baltic countries using a gravity approach. The results of the empirical estimation allow us to explain how difference in corporate taxation between countries, geographical and cultural distance, institutions such as regulations and the size of the economy as well as its economic development affect FDI inflows into the Baltic countries. The influence of corporate taxation on FDI flows, expressed as corporate tax rate differences between investor and host countries is statistically significant. Larger geographical distance between the countries reduces FDI flows, and institutional variables such as the economic freedom index have significant impact and affect positively FDI into the Baltics. Finally, the size of economy, measured by GDP, impacts positively the FDI flows into Baltic countries.
- Language
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Englisch
- Bibliographic citation
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Series: Jena Economic Research Papers ; No. 2012,060
- Classification
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Wirtschaft
- Subject
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gravity model
foreign direct investments
corporate tax
Baltic countries
Direktinvestition
Ausländisch
Gravitationsmodell
Schätzung
Nordosteuropa
- Event
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Geistige Schöpfung
- (who)
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Raudonen, Svetlana
Freytag, Andreas
- Event
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Veröffentlichung
- (who)
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Friedrich Schiller University Jena and Max Planck Institute of Economics
- (where)
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Jena
- (when)
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2012
- Handle
- Last update
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30.03.4025, 12:44 PM CEST
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Raudonen, Svetlana
- Freytag, Andreas
- Friedrich Schiller University Jena and Max Planck Institute of Economics
Time of origin
- 2012