المستخلص: |
This paper empirically investigates the influence of the World Bank Doing Business Rankings on Foreign Direct Investment inflows into developing economies using the System-GMM approach for the period 2006 to 2013. The result shows this relationship to be statistically insignificant. However, when the data is separately restricted to two developing economic blocs; the GCC and the ECOWAS economic blocs, the estimates show significant correlation between Doing Business Rankings and Foreign Direct Investment inflows into the GCC than the ECOWAS economic bloc. This heterogeneity of results could be as a result of positive changes or improvements in the Doing Business Rankings of the GCC countries, as they seem to occupy better or higher positions even on the Doing Business Ranking index. This development tend to confirm that even as a developing economy, a country can attract more foreign investments if the economy is business friendly. It is therefore, incumbent on policy makers of developing economies to develop, prioritize and implement appropriate competitiveness initiatives to attract more FDI flows to ensure economic growth and development.
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