Administrative Costs of Regulation and Foreign Direct Investment: the Standard Cost Model implementation in non-OECD countries

Jacopo Torriti, Ekaette Ikpe

Research output: Contribution to journalArticlepeer-review

7 Citations (Scopus)

Abstract

In recent years both developed and developing countries have experienced an increasing number of government initiatives dedicated to reducing the administrative costs (AC) imposed on businesses by regulation. We use a bi-linear fixed-effects model to analyze the extent to which government initiatives to reduce AC through the Standard Cost Model (SCM) attract foreign direct investment (FDI) among 32 developing countries. Controlling for standard determinants of the SCM, we find that the SCM in most cases leads to higher FDI and that the benefits are more significant where the SCM has been implemented for a longer period.
Original languageEnglish
Pages (from-to)127–144
Number of pages18
JournalWELTWIRTSCHAFTLICHES ARCHIV-REVIEW OF WORLD ECONOMICS
Volume151
Early online date2 Aug 2014
DOIs
Publication statusPublished - 1 Feb 2015

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