Administrative costs of regulation and foreign direct investment: evidence from Standard Cost Model implementation in non-OECD countries

Torriti, J. ORCID: https://orcid.org/0000-0003-0569-039X and Ikpe, E. (2015) Administrative costs of regulation and foreign direct investment: evidence from Standard Cost Model implementation in non-OECD countries. Review of World Economics, 151 (1). pp. 127-144. ISSN 1610-2886 doi: 10.1007/s10290-014-0200-y

Abstract/Summary

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.

Item Type	Article
URI	https://reading-clone.eprints-hosting.org/id/eprint/35854
Item Type	Article
Refereed	Yes
Divisions	Interdisciplinary centres and themes > Energy Research Science > School of the Built Environment > Energy and Environmental Engineering group
Uncontrolled Keywords	Administrative costs; Foreign direct investment;Developing countries;Standard Cost Model
Publisher	Springer
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