THE IMPACT OF GOVERNANCE QUALITY AND FINANCIAL STABILITY RISK OVER FDI FLOW: EVIDENCE FROM SOUTH CAUCASUS
THE IMPACT OF GOVERNANCE QUALITY AND FINANCIAL STABILITY RISK OVER FDI FLOW: EVIDENCE FROM SOUTH CAUCASUS

Summary/Abstract: This paper analyzes foreign direct investment flows in the South Caucasus region. The analyses were conducted in view of the impacts of Governance quality and financial stability from these regions on the inflow of foreign direct investment. Improvement of the governance quality and reducing financial risks can be seen as the most important determinants of FDI inflows into the countries of this region. First and primary important objective of the research is to identify determinants of Foreign Direct Investment in countries and thanks to available past figures statistically measure their effects on the variable. This research is a pioneer in the field to specifically focus on identifying and measuring degree of importance of factors most valued by overseas investors interested in capital contribution into Azerbaijan. The paper precisely identifies statistically significant factors which may act as a practical insight for both practitioners of the topic and decision making authorities. Findings of the research can be invaluable for both government bodies committed to boost economic development through Foreign Direct Investment inflows and organizations or individuals interested in new venture opportunities.

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