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