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KDI 경제교육·정보센터

ENG
  • 경제배움
  • Economic

    Information

    and Education

    Center

최신자료
Boosting Foreign Direct Investment through Strategic Reforms
IADB
2025.07.22
The main objective of this study is to analyze the relevance of economic and institutional factors in shaping the dynamics of Foreign Direct Investment (FDI). To this end, several econometric analyses are conducted to examine the determinants of FDI inflows. The results indicate that, across a panel of countries, factors such as market size, exchange rate policy, the degree of trade openness, and the quality of public governance including political stability, adherence to the rule of law, government efficiency, and regulatory quality are decisive for attracting foreign capital. In the specific case of Brazil, the study reveals that both domestic and external factors significantly influence capital inflows. GDP growth, a more appreciated exchange rate, greater openness to international trade, macroeconomic stability, and a more developed financial market with improved access to credit constitute fundamental elements for attracting international investors. Furthermore, a favorable external environment, particularly in periods of buoyant global stock markets, also contributes to increased capital flows to the country.