Foreign direct investment : does access to civil justice matter?
Thesis (M.P.P.)--Georgetown University, 2011.; Includes bibliographical references.; Text (Electronic thesis) in PDF format. Development literature suggests that legal systems provide the framework for examining the main drivers of development. As one of the main legal tools through which lay citizens and companies can enforce contracts, the present analysis focuses on assessing the impact that the level of access to the legal system has on foreign investors` decisions. Using a two stage least square (2 SLS) regression and data from the Rule of Law Index collected in 2009, this paper finds that the access to civil justice does not have a significant effect on Foreign Direct Investment. Further, the regression analysis indicates that the amount of taxes paid by the businesses as a percentage of commercial profits, the number of days to start a business and the Gross Domestic Product Per Capita are more important to attract foreign capital than the finding itself.
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