IMPACT OF EASE OF DOING BUSINESS ON FDI INFLOWS ACROSS DIFFERENT ECONOMIES

Abstract

The research study looks at the influence of Doing Business on Inward Foreign Direct Investments from 2010 to 2020 across the globe. This research assesses the ease of conducting business by examining the process of ten parameters: Starting a Business, Getting Credit, registering property, Paying taxes, Trading across borders, resolving insolvency, Enforcing contracts, Protecting Minority Investors, Getting Electricity, and Dealing with Construction Permits. The study drew a sample of 211 nations from the World Bank's list. To investigate the causal link between the Country’s Ease of doing business, Foreign Direct investment, and the growth of the economy, the least square regression model was employed in conjunction with the Eviews program. The Findings of the study discovered that the ease of doing business had a positive substantial influence on inward Foreign Direct Investment and the Foreign Direct Investment inflows have a substantial influence on the country’s Gross Domestic Product Growth which will help international managers and businesses to understand the relevance of ease of doing business while investing in other countries through FDI. According to the study's results, the ease of conducting business and sustainability facilitates inbound FDI by improving all the indicators of the Ease of Doing Business across three different economies. The index of doing business rankings of every country across the globe significantly plays a vital role for MNC companies such as the time, procedures, and the cost it takes for computation, paying tax, and registration for lands which can be controlled by the Government. The results of the regression analysis show that the effect of the Ease of Doing Business rankings on Foreign Direct Investment is a predominantly greater influence for developing economies compared to the developed as well as the transition economies. The requirement for ease of doing business is to initiate FDI, which is a crucial trigger for economic growth and also accounts for a significant non-debt financial resource for any nation's economic boost