Paper: SSRN 623885

Abstract

An export orientation is the strongest variable explaining why a country attracts foreign direct investment.

Singh and Jun expand on earlier studies of the d

Complexity vs Empirical Score

  • Math Complexity: 2.0/10
  • Empirical Rigor: 3.0/10
  • Quadrant: Philosophers — conceptual discussion, limited math and data

Why this score: The paper relies on standard regression analysis and Granger causality tests with macroeconomic data, lacking advanced mathematics or dense theoretical derivations. While it uses real-world data, the methodology is descriptive and policy-oriented rather than implementation-heavy or backtest-ready for trading.

Research Flowchart

  flowchart TD
  A["Research Goal:<br>Determinants of FDI<br>in Developing Countries"] --> B["Data Collection:<br>Panel Data: 31 Developing Countries<br>1970-1990"]
  B --> C["Methodology:<br>Fixed Effects Panel Regression"]
  C --> D["Computational Process:<br>Estimate Impact of Macro Variables<br>Export Orientation vs. Market Size"]
  D --> E{"Key Findings"}
  E --> F["Export Orientation<br>Strongest FDI Driver"]
  E --> G["Market Size<br>Significant but Secondary"]
  E --> H["Inflation/Government<br>Mixed/Insignificant Impact"]