DAĞITILMAYAN YABANCI KARLARIN BELIRLEYICILERI

ABSTRACTPrevious studies have overwhelmingly treated Foreign Direct Investment FDI as a monolithic variable rather than a multidimensional one. However, FDI consists of three main components. This study investigates the responsiveness of reinvested earnings as a sub-component of FDI in the 80 countries to the macro-economic indicators and individual country risks for the 2006–2012 period. The study found strong evidence that reinvested earnings are positively correlated with the political risk ratings confidence level , GDP, GDP growth rate, and consumer confidence level of each individual host country and are negatively associated with repatriation and payment delay risk ratings.Key Words: FDI, foreign reinvested earnings, foreign retained earnings, dynamic panel dataJEL Codes: C23, F21, F23, F24, F29

Anahtar Kelimeler:

DYY, Yabancı Dağıtılmayan Karlar, Dinamik Panel Veri

DETERMINANTS OF REINVESTED EARNINGS AS A COMPONENT OF FOREIGN DIRECT INVESTMENT

Previous studies have overwhelmingly treated Foreign Direct Investment FDI as a monolithic variable rather than a multidimensional one. However, FDI consists of three main components. This study investigates the responsiveness of reinvested earnings as a sub-component of FDI in the 80 countries to the macro-economic indicators and individual country risks for the 2006–2012 period. The study found strong evidence that reinvested earnings are positively correlated with the political risk ratings confidence level , GDP, GDP growth rate, and consumer confidence level of each individual host country and are negatively associated with repatriation and payment delay risk ratings

Keywords:

FDI foreign reinvested earnings, foreign retained earnings, dynamic panel data,

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