Decentralization and Foreign Direct Investment : Impact of Fiscal and Political Decentralization on FDI Inflow (2019.08)

  • 저자 : Seonyeong Jo, Dong-Hun Kim
  • 학술지명 : 동북아연구
  • 발행처 : 조선대학교 사회과학연구원 부설 동북아연구소
  • 권호 : 34(1)
  • 게재년월 : 2019년 08월
  • DOI : 10.18013/jnar.2019.34.1.011
  • 초록 : We examine the interactive effects of political decentralization and fiscal decentralization on foreign direct investment. We argue that the positive effect of fiscal decentralization on FDI inflow becomes stronger with the political decentralization. Empirically, we test the argument using Hooghe et al. (2015)’s original dataset on Regional Authority Index and analyze 81 countries for the period 1970 to 2010. The empirical results suggest that in general, fiscally and politically decentralized host countries receive more FDI inflow.