The Effects of Restrictive Measures on Cross-Border Investment: Evidence from OECD and Emerging Countries

This paper investigates the effects of global and sectoral restrictive measures on crossborder FDI among 49 advanced emerging countries. We use a gravity model with panel data from 2010 to 2019 Restrictiveness Index OECD that quantifies level restriction in FDI. Our results suggest do not significantly affect cross-border countries, while restrictions service sector have negative significant Moreover, overall those negatively impact inward big In addition, services impede African Interestingly, secondary boost between larger for investments The analysis disaggregated shows business other financial are associated intra-OECD FDI, banking positive also find manufacturing impacts inwrad mining, quarrying, oil extraction hinder Reforms liberalize by country but deregulation has beneficial all