Graduation Year

2023

Date of Submission

12-2022

Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts

Department

Economics

Reader 1

Murat Binay

Terms of Use & License Information

Terms of Use for work posted in Scholarship@Claremont.

Abstract

This paper aims to investigate the primary determinants of foreign direct investment (FDI), balance of payments (BoP), and net portfolio equity inflows (NPEI). The research adds on to the existing empirical literature by studying whether the independent variables economic growth rate, unemployment rate, trade openness, corruption index, and stock price volatility would significantly impact FDI, NPEI, and BoP in a sample consisting of both developed and developing countries. Employing a fixed effects panel data regression model, the results highlighted statistically significance that economic growth, unemployment rate, trade openness, and corruption index helped determine the FDI for a country. Next, it was seen that economic growth, corruption index, and stock price volatility were statistically significant to understand the BoP for a country. Lastly, results also illustrated that economic growth, trade openness, and stock price volatility were significant for NPEI in a country. Future studies can explore this topic in further detail by increasing the sample size to include more countries and also include additional measures to understand the corruption index and stock market of a country.

Download

This thesis is restricted to the Claremont Colleges current faculty, students, and staff.

Share

COinS