Volume 2 • Issue 2 | June, 2018

The Effect of Transparency on the Attraction of Foreign Direct Investment: An Approach of Spatial Regression

Bui Hoang Ngoc

Abstract: Transparency in the government’s activities will strengthen its directions. Transparency is an important solution to corruption problems, and it is an indispensable condition for the government to absorb knowledge from the public, businesses and organizations, to manage the economy and attract foreign direct investment (FDI). This study applies the spatial regression method with dynamic panel data to test the impact of transparency on attracting FDI of 11 Asian countries from 2005-2015. The results show a strong statistical evidence to support the conclusion that transparency helps increase FDI in these countries.