Foreign Direct Investment: The Canadian Experience

Nuno Carlos Leitão

Abstract


The Canadian economy has been a net recipient of foreign direct investment (FDI). The free-trade agreements (FTA and NAFTA) have had to attract more inward FDI. The purpose of this paper is to analyze the impact of variables, such as, market size, labour costs, openness trade, and economic stability. The manuscript applies a static and dynamic panel data approach (Fixed Effects estimator and GMM system estimator). The empirical results indicate that the market size, openness trade are significant factors to explain inward FDI into Canada. The wage and taxes are also statistically significant.

Keywords: Foreign direct investment, panel data, Canada.


Full Text: PDF

Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

International Journal of Economics and Finance  ISSN  1916-971X (Print) ISSN  1916-9728 (Online)

Copyright © Canadian Center of Science and Education

To make sure that you can receive messages from us, please add the 'ccsenet.org' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.