Electricity regulation and FDIs spillovers in the OECD: A panel data econometric approach

Autor:	Irene Fafaliou, Michael Polemis
Rok vydání:	2015
Předmět:	Macroeconomics Electricity regulation business.industry Feedback effect Econometrics Economics Oecd countries Foreign direct investment Electricity business General Economics Econometrics and Finance Panel data
Zdroj:	The Journal of Economic Asymmetries. 12:110-123
ISSN:	1703-4949
DOI:	10.1016/j.jeca.2015.05.004
Popis:	The aim of this paper is to investigate the regulatory process in the electricity sector and determine the extent to which it has affected the level of Foreign Direct Investments (FDIs). For this purpose, we use an annual data set covering the period 1975–2010 and panel data econometric techniques. Our results suggest a feedback effect between electricity regulation and the attraction of FDIs in the OECD countries. This finding highlights the existence of a sound regulatory environment in the examined electricity sectors, implying that a liberalized and competitive electricity sector can be employed under specific settings by policy makers to attract FDIs. Further, we find a two-way Granger type causation between FDIs and effective regulation in the electricity sector, thus providing sufficient evidence that a proper regulatory environment is a prerequisite for increases in the level of FDIs.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::e1d7b2c71bbaac588297a14b48fd32f8 https://doi.org/10.1016/j.jeca.2015.05.004 Zobrazit plný text záznamu Full Text from ScienceDirect