Munich Personal RePEc Archive
International evidence on the link
between foreign direct investment and economic freedom
Azman-saini, W.N.W and Tun, Yin-Li and Ibhrahim, Saifuzzaman
Universiti Putra Malaysia
22 June 2013
Online at https://mpra.ub.uni-muenchen.de/65894/
MPRA Paper No. 65894, posted 03 Aug 2015 14:50 UTC
! " #$ %$
!
" # $
$ $ ! "
%&
'
" ( )*
+,-+./00* " ( . .
$ " (
$
$ "
1 /+ %/0
1 . .
2 & 1 1 3 4 " " "
& $
! $
%&
"
$ 5 $ %& !
67 8 3 +,,- " (
$ ! ! +,,* !
$ 9 ! '
/00+ " %& $ !
$ 9 ! +,,: " ;
%& $ $ $ 3
$
"+(
$ $ 5
"/
%& ' $ $
"<
$ %&(< /00, +)*
/000./00- " " --
$ " %&
+6 . ' " ' <3 .
/0+0 $= < /00>= /00>= 8 3 +,,-= "
/
$
" ? $ @*) $ +,-/
@+/)+ $ /000 ! @/0,, $ /00) %&(< /00+ /00, "
$
? " < $
$ "
( $ 9 $
%& " (
! ! %&
$ "
$ "
!
! $ " (
$ .
%& " '
" &
" " $ %&
$ $ $ "
$ $ " (
$ 9 $ ! "
A $
' 5 ! ! "
( 8 3.6 $ /00: B 3 /00)
"8 3.6 $ /00: '
+0 A
< " 3 9
B 3 /00) < " (
$ . " 3
)* $
" ( $
$ $ "
9 $ "
3 . . $
. $ $
$ " (
$ $ " (
3 <3 . /0+0
$ "
" ( ? /00/ % $ ! /00+ !
3 6 3 /00C= B 3 /00) 9 < /00/
% $ ! /00+ ":( 9
$ ! $ 9 %& 5
8 3 +,,- " %& ! $
:8 /00* ' "
$ D 67 ' " ( 9
$ $ ! " ! 3
$ " ( !
/0+0= E 6 /00+ "( $
9 %& $
$ 3 " (
$ %& 5 $ $ <
/00/ < /00- " (
$ $ % $ !
/00+ " ( $
$ " < $ %& 9
F %& ! " 8
$ $ .
/00-=
& G /000= % A /00C "
( " / "
: ' " > " *
" & C"
' ( ) %
( $F
" "8
" '
" H
" (
$ $
! 3
' " <
"
48 8 3.6 $ /00:
A < <
58 3.6 $ /00: = B
" ( 3
3.6 $ /00:= B 3 /00) ">
1
'" ( $
' ?
$ 9
$ .
$
3
'
'
$
%&
/00: B 3 /00)
< "
B 3 /00) = G ! /00, = < /00/ "
'
I+J
$ '
9
"*
3 '
'
" E
" (
* ( +
(
3 . .
! +,--
8 8 +,,- " (
" '
$ .
'
$ %&
.? .?
9
" ( $
E
' $ "
"
' $
"
?
$ < 8 +,,+ <
(
' $ $
" $
' $ "
"
?
? .? " ( .?
9 + $ $
$ ' 1
$ "
$
< 8 +,,+
$ " (
9 /
$ # 3.
8 +,,*
$
$ $
$ F
. .
I/J
. 9
"
<
1
< $
'
< .8 < +,,
' $
' 9
( !
? $
+,,-
! .? "
9
9 +
" " ' $ $
< 8 +,,+
$ $
' $
+,,, 8 8 +,,-
" " " (
9
! $
" < < 8 +,
$ 9 + / " 8
$
" < 8
9 / $
+ 1
! ' "
9 /
I:J I>J
I*J .
" <
!
" (
"
+,,* .
8 8
8 +,,*
ICJ I)J
( $
" ( '
<
F
8 .?
< 8
. $
.
E
!
$ $
& 9
"C 6
, ) %
(
+,-+ ./00*
6<
$ .?
9 / " (
' .
8 +,,+ " ( # 5
" $
9
.? $
+,,+ " ( .
$ "#
$ $
E F /00* " 8 /00/
" 6 /00,$
$ ' "
9 " : K -
6 /00, $
$ )* $
00* ")( $
- ' $ 6 /00, "
I-J
5 .
$ $
"
. .
#
$
0,$
"
$
$
$ " ! $ "
$ $ E
? " " L? " ( ! $
! $ " ! '
$ ! F ' " (
$ M$ ! $ N 6 < +,), " (
' !
" ( ' + 3
' ' /
: > *
$ $ " ( ' 0.+0 +0
" ; $ '
" A ' +00
9
" 8 ! E $ " !
E( $ "
$ 3 " (
$ $
'" ( $ "
( )* " #
$ " <
$ " ( $
)6 < ' < "
" $
$ . +,-+.+,-* +,-C.+,,0 O /00+./00* "
$ $ <3 . " /0+0$= <
/0++ "
. ) / $
(
" ( " <
+" ( '
" #
"
0"0C* ' .0"/>0 " #
"
( '
" 3 ' $
9 + . .?
( $ /" ( $ +0P
" (
" ( %& !
$ $
$ "6
L? $
" (
$ %& %&
! 3 $ " ( %&
$ " (
< " /0+0 ! 3
" ; $ '
' . !
! " ' "
. # 0"+::
0"++* $ $ F " (
$ "
$
" $
( $ + $ $ $ " <3 .
/0+0 & " " .
" ! $ $
$ $ $ (
$ 8 +,-0 "( !" = L+−
3 $ = L +− 9
9 $ "
8 " +,-0 $ $ (
/ #L # $ $
$ " ( ( <
" / $
" & <
$ $ "
8 . 9 + $ '
< " ( ( $ :
. +0P
" 9
$ $ " (
" ( ! $
$ $ $ " ; 8
3.6 $ /00: B 3 /00)
A < < "
0 1 $
$ ! !
$ " < "
3 9 " (
$ $
$ $ " (
3
)* +,-+./00* " &
. "
$ $ $ !
5 "
(
3 !
" $
$ ' $ !
! $
" # $ $ '
.
$ "
/ %
< " <" 7 %" 7 6" /0+0 "
Q$ /+ / /0+./+,"
< " 7& <" 7 ; R" /0++ "( 6
" % & ' ( :: : >-+.>,C"
< .8 &" 7 < " +,,, " % 3 . $
" % )% " +) + :C.>,"
< S" 8" /00- " " % &
' ( :0 + +-*.+-,"
< " 7 8 " +,,+ " ( 1 &
< 9 " " % *- /
/))./,)"
< " 78 ;" +,,* "< A ! . $ .
" % C- + /,.*/"
< " /00/ " ; & 1
< Q :0 + +0).++,"
<3 . E" %" E" 8 <" T" 7 A " #" /0+0$
? 1 " ' (
/) * +0),.+0-,"
<3 . E" %" E" A " #" 7 < <"#" /0+0 " ? 1 %
6 ! " +0) / /++K/+:
8 " G " 7 E 6" +,-0 " ( ( * ( %
% % U !1 E "
8 " 7 3.6 $ 8" /00: "
? 1 % A < % % & +, :
*/,.*>*
8 8" <" /00* " < 6 A +
% :: > :-:.>0:"
8 6" 7 8 " +,,- " & 6
" % -) + ++*.+>:"
8 3 " ? S" 7 A S" +,,- " # <
? Q % >* + ++*.+:*"
8 ! " S" & A" S" & <" 6" A H" R #" 7T " /00) (
& ; % )% " %
:- > >,,.*+-"
& A" G" 7 G U" G" /000 " E A
Q ( & ' " % *+ / :),.
>00"
G" 7 " A" /0+0 " 8 8 1 ! 3
*+ / :+,.:::"
S" +,,: " '% ( , " E ! 1 < .
E $ & "
S" /00> " <$ & 9
? " % >- / 1 /-*.
:0C"
! S" E" 76 <" (" /00C "?
< +,*C./00:" ' ( /: * ):-.)C0"
<" " 76 (" /00+ "
E ! 5 $ " % *: + /0*.///"
? <" 7 G" /00/ " ( ( ""
% +0> > >,*K*+:"
# 3. ! " % E" 7 6 #" " +,-- " R <
" *C C +:)+.+:,*"
G ! 6" 7 8" <" /00, "<
& " % " :C + +0*.+/:"
! S" +,,* " ( 8 (
( " % & , / +C,.+-,"
% A " 7 A E" " /00C " 6
A & " % ! ( ' ( + : /C/./)-"
% $ ! " <" 7 U <" /00+ " # &
& 1 % " /, , +*,:.+C+0"
B 3 6" /00) " .< " %
+ & +/ : :/,.:>>"
6 3 " " /00C "
& 1 < ( < +,C0./00+" & /> : >*,.
>)+"
6 " /00, " < % ( ( "$- )%
" )+ + +:*.+*-"
6 " 6" 7< <" <" +,), "
& " % % ( /) >
)*+.)C)"
6" 7 #" 7 8 <" 7 E <" /00- " (
% 1 < ' " " " % *) :7>
),.+0>"
%&(< /00+ " E 6 1 A ! " % "
%&(< /00, " E 6 1 ( & <
" % "
E G" 7 6 " " /0++ " <
& 1 ( 6 ! ! 6 ! !
% )% ' ( C ++ /+,.//C"
$ &2
# '2 $ V L?
6 & " " " .
L? .+ 0"C/0222 0"+:) 0"000
A ' .:"::0 :"00) 0"/C-
.0"+0: 0":,) 0"),>
( A .0"+// 0"/C/ 0"C>0
*")+>2 :"0:: 0"0C0
& C"+/* ++":)> 0"*,0
+ / . 0"++*
. . 0"+::
% $ ;$ /,>
% $ & )*
% 1 2 22 222 +0P *P +P " 6 .
"+ /01 . " S. # "
( . $ "A /
9 . + .
9 " "
$ '26
# *26 $ & ! $ V L?
6 & " " " .
L? .+ 0"**,222 0"+>/ 0"000
A ' .:":)) /"*C) 0"+--
.0"+-> 0">0) 0"C*+
( A .0"0)> 0"//- 0")>C
*":-C22 /"*+: 0"0:/
& -":0) ,"+00 0":C+
+ / . 0"+>+
. . 0"+)+
% $ ;$ /-/
% $ & )/
% 1 2 22 222 +0P *P +P " 6 .
"+ /01 . " S. # "
( . $ " A /
9 . + .
9 " "
)) - A
1 $ + 1 $ + 1 $ + 1 $ +
< G 6 "
<
< <
< ?
8 ? A !
8 ? '
8 ? 3
8 3 # % (
& % T (
& % ( 7( $
& % (
& 6 " % ( !
& $ ! G
& 6
& W % ?
! S R 3
6 " S T $
S T $ $
G
