THE IMPACT OF SOCIAL NORMS ON FOREIGN DIRECT INVESTMENTS
DOI:
https://doi.org/10.2478/subboec-2024-0007Keywords:
foreign direct investment, cultural tightness-looseness, economic growthAbstract
This study examines the impact of social norms, measured through the Cultural Tightness-Looseness (CTL) index, on foreign direct investments (FDI) across 67 countries. I aimed to highlight a new approach from the sphere of cultural influences on bilateral FDI flows and to demonstrate the direct connection between the strictness imposed by a country's social norms and the investment decisions based on them. The results obtained were in line with the initial expectations, validating the level of constraint/permissiveness as a truly influential factor in relation to foreign direct investments.
JEL Classification: F21, G11, G15, Z10
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