Vol 1, No 4 (2013)
Comparing Business Regulations and Foreign Direct Investment on Economic Growth of G77 and OECD Countries
Saeed Khodabakhshzadeh, Shahrzad Motevassel, Saeed Khastavan, Kamran Mahmodpour, Mojtaba Shahiki Tash
Abstract
One of the prerequisites for economic growth is capital. One way of financing is absorbing Foreign Direct Investment. Attracting foreign direct investment needs safe business environment, because it makes possible the return on investment and investment performance. For establishing a safe environment, we require proper Laws for business. In this study, the relationship between foreign direct investment, regulation of business and economic growth are examined in the years 2004 to 2010.This study is done using panel data model. Statistical sample used in this study, including 19 selected countries among G77 countries and 15 selected countries from OECD countries. The results show that the amount of foreign direct investment in the G77 countries with two-lag period has positive and significant impact on economic growth. In addition, the rule of law, with one period of delay has a positive and significant impact on economic growth. In OECD countries, the results indicate that foreign direct investment without delay has a positive and significant impact on economic growth, and the rule of law without delay has a positive and significant impact on economic growt.
Full text: 
PDF
Keywords
Foreign Direct Investments; Rule of law; Business environment; Economic growth; Panel Data
Publication information
Volume 1, Issue 4
Year of Publication: 2013
ISSN: 1857 - 8721
Publisher: EDNOTERA
How to cite
Khodabakhshzadeh, S., Motevassel, S., Khastavan, S., Mahmodpour, K. and Tash, M.S. (2013). Comparing Business Regulations and Foreign Direct Investment on Economic Growth of G77 and OECD Countries. Journal of Applied Economics and Business, Vol 1, No. 4, 80-94.