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https://hdl.handle.net/2142/85566
Description
Title
Three Essays on FDI and Decentralization
Author(s)
Ahn, Byung Kwun
Issue Date
2006
Doctoral Committee Chair(s)
Hadi Salehi Esfahani
Department of Study
Economics
Discipline
Economics
Degree Granting Institution
University of Illinois at Urbana-Champaign
Degree Name
Ph.D.
Degree Level
Dissertation
Keyword(s)
Economics, General
Language
eng
Abstract
Chapter 3 provides empirical evidences on the arguments discussed in Chapter 1 and Chapter 2. Estimation result based on U.S. outward FDI indicates that decentralized countries attract more FDI than unitary countries. The estimation results support the hypotheses derived from the theoretical models: A decentralized country has more FDI when sub-national governments have enough authority on FDI policies and the differences of employment gain among regions are large. Decentralization has positive effects on FDI when fiscal authority and political power is appropriately divided between central government and sub-national governments. Decentralization has significantly positive effect on FDI only in a democratic country.
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