Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

We discussed research that provided the model for FDI inflow in the Czech Republic. The model suggests that GDP in Czech (GDP expressed by billion

We discussed research that provided the model for FDI inflow in the Czech Republic. The model suggests that GDP in Czech (GDP expressed by billion K), the perceived image of corruption for Czech by other countries (expressed by point), Corporate Tax in the country (expressed by %), and research expenditure (expressed by billion K) by Czech, all significantly contribute to FDI in the Czech Republic. See below. What is the correct interpretation of the model?

FDI inflow = .18b + .43b*GDP 15b*CPI 40b*TAX + 12b*SR

Source: Linhartova, V. and Owusu, E. (2018). Analysis of foreign direct investment determinants in the selected country. Economic and Social Development: Book of Proceedings.

Increase of 2% corporate tax decreases K 80 billion FDI

Increase of 2% corporate tax decreases K 35 billion FDI

Increase of 2% corporate tax decreases K 40 billion FDI

Increase of 2% corporate tax decreases K 50 billion FDI

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Options Futures And Other Derivatives

Authors: John Hull

9th Global Edition

1292212896, 9781292212890

More Books

Students also viewed these Accounting questions

Question

What is the correlation between VERBAL and FIRST-YEAR GPA?

Answered: 1 week ago