Relationship between financial crisis and foreign direct investment in developing countries using semiparametric regression approach

Abstract

This paper analyzes whether and to what extent the inflow of FDI is affected before and after the occurence of a financial crisis in developing countries. The paper uses a semiparametric Generalized Partial Linear Models (GPLM) regression approach to check the appropriateness and effectiveness of financial crisis in the FDI regression model. The results indicate that FDI inflows decrease in the years after a financial crisis and an upturn in FDI inflows the year before a financial crisis hit the country. Santrauka Straipsnyje keliamas klausimas ‐ kokia kryptimi ir kokiu stiprumu tiesioginiu užsienio investiciju (TUI) iplaukas i besivystančios šalies šeimininkes ūki veikia finansu. krize kapitala priimančioje šaly‐je. Autoriu formuluojamoms hipotezems patvirtinti ar paneigti naudojamas semiparametres regresijos modelis. Gauti rezultatai rodo, kad TUI turi tendencija mažeti ne tik finansu. krizes metais. Būdamos inertiškos, TUI mažeja net finansu. krizei besivystančioje šalyje pasibaigus. First Published Online: 14 Oct 2010 Reikšminiai žodžiai: semiparametres regresijos modelis, finansnkrize, tiesiogines užsienio investicijos, besivystančios šalys

Keywords

• Semiparametric regression approach
• Generalized Partial Linear Models (GPLM)
• financial crisis
• foreign direct investment
• developing countries