Logistics Performance and Its Impact on Attracting Foreign Direct Investment: An Empirical Study of a Group of Developing Countries
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Abstract
This study examines the relationship between logistics performance and the attraction of foreign direct investment (FDI) through an econometric analysis involving 20 developing countries over the period 2007–2017. To comprehensively address the research objectives, various economic indicators were employed to represent the independent variable (foreign direct investment) and the dependent variable (logistics performance). The analysis was conducted using EViews 10 software. The findings from the three econometric models tested—pooled regression, fixed effects, and random effects—indicate that the fixed effects model is the most appropriate for this study. Furthermore, the results reveal an inverse relationship between foreign direct investment and logistics performance across all three estimated models.