This implies that more opacity and higher tax would reduce inward foreign direct investment. Other regressors also have sensible signs. Countries with low labour cost, as proxied by log of per capita GDP, also receive more FDI on average. Two additional variables are used to capture possible special relations for certain pairs of source-host countries. Host countries also tend to receive more FDI from geographically close source countries.
Standard errors are in parentheses.
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