Foreign direct investments in developing countries: The openness hypothesis and policy implications
Taylor and Francis (Routledge)
The International Trade Journal
A cross-sectional time series model was estimated to explain the influence of the openness of an economy and political instability on gross inflow of foreign direct investments into developing countries. Results indicate positive relation between the openness of developing economies and the inflow of foreign direct investments and negative relation between political instability and the inflow of foreign direct investments. Research findings and policy implications are presented.