Date of Award
Spring 2023
Degree Type
Open Access Dissertation
Degree Name
International Politics and Political Science, PhD
Program
School of Social Science, Politics, and Evaluation
Advisor/Supervisor/Committee Chair
Mark Abdollahian
Dissertation or Thesis Committee Member
Yi Feng
Dissertation or Thesis Committee Member
Jacek Kugler
Terms of Use & License Information
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.
Rights Information
© 2023 Yuan-Yuan Lee
Keywords
Economic factor, Foreign direct investment, Governance factor, Human resource, Income group, Region
Subject Categories
Economics | Political Science
Abstract
The economic crisis in 2008 prompted the restructuring of the world economic and trade patterns. The global supply chain began to restructure, and international investment presented more diversified features. The COVID-19 Pandemic brings a new global economic crisis. which is likely to negatively impact many businesses that rely heavily on the Chinese market. Quarantine policies have forced people to stay at home, reducing public connectivity and leading to a slowdown in economic growth. The outbreak has also caused companies and factories to pause operations, affecting trade, travel, and consumption. International investors are increasingly concerned about economic uncertainties, which highlights the need to understand future trade potentials for foreign direct investment (FDI).This research aims to assess perceptions of the relative importance of economic, human resource and governance factors that increase attracting of FDI at the national level. I collect panel data with 4,761 observations cross 207 countries from 1996-2018, using FDI as dependent variable (DV) and three domain vectors of independent variables (IVs): Economic, human resource and governance. In this paper, using Pooled OLS and Fixed Effect (FE), leveraging the outcome of Hausman test to support the decision of choosing Fixed Effect as the appropriate model specification to my designed framework. The goal of this research is to explore the relationship among FDI, economic, human resource and governance factors. The result from the study demonstrates economic variables are the most crucial factor with positive impact on FDI. Next, export as one of the most influential variables cross all models, illustrates the importance of trade activities can promote foreign investment flow in global markets. Moreover, economic size is also another key factor that has a positive impact on FDI. There are a few data limitations which prevented the ability to expand observation period and sampling nations. First, I experience minor challenges for independent variables governance and RPC data collection which lead to choose this research to focus with data from 1996 to 2018 to avoid unbalanced panel data. Second, due to data availability I am unable to include other countries that may also have positive contribution to the study. One of the countries of interest I would like to include for future extension research is Taiwan, with its high involvement in export especially in high-technology and manufacturing sectors, adding Taiwan into the model may better support us to calibrate research validity for Asian region.
ISBN
9798379900540
Recommended Citation
Lee, Yuan-Yuan. (2023). An Empirical Study: Evaluating the Impact of Economic, Human Resource, and Governance Factors to Foreign Direct Investment. CGU Theses & Dissertations, 545. https://scholarship.claremont.edu/cgu_etd/545.
