Variables with definitions
| Variables | Type | Definitions | Unit | Data sources |
|---|---|---|---|---|
| FDI | Dependent | Net foreign direct investment inflows expressed as a percentage of GDP | Foreign Direct Investment inflows (% of GDP) | World Bank (2024) |
| IFRS Dummy | Independent | Binary variable equal to 1 in years when a country has adopted IFRS and 0 otherwise | Binary | IAS Plus (2025), IFRS Foundation (2025b) |
| GDP Growth | Control | Annual percentage change in gross domestic product | GDP growth (annual %) | World Bank (2024) |
| Inflation | Control | Annual percentage change in the consumer price index, reflecting changes in the general price level | Inflation, consumer prices (annual %) | World Bank (2024) |
| Trade Openness | Control | Ratio of total trade (exports plus imports) to GDP | Trade (% of GDP) | World Bank (2024) |
| Financial Market Development | Control | Level of financial sector development measured by domestic credit provided to the private sector as a percentage of GDP, reflecting the availability of financial resources to the private sector | Domestic credit to private sector (% of GDP) | World Bank (2024) |
| Political Stability | Control | Index measuring the perceptions of political stability and the absence of politically motivated violence | Political Stability and Absence of Violence/Terrorism: Estimate | World Bank (2023) |
| Governance | Control | Indicator measuring perceptions of the quality of public services, policy implementation, civil service effectiveness, and government credibility | Government Effectiveness: Estimate | World Bank (2023) |
| Variables | Type | Definitions | Unit | Data sources |
|---|---|---|---|---|
| FDI | Dependent | Net foreign direct investment inflows expressed as a percentage of GDP | Foreign Direct Investment inflows (% of GDP) | |
| IFRS Dummy | Independent | Binary variable equal to 1 in years when a country has adopted IFRS and 0 otherwise | Binary | |
| GDP Growth | Control | Annual percentage change in gross domestic product | GDP growth (annual %) | |
| Inflation | Control | Annual percentage change in the consumer price index, reflecting changes in the general price level | Inflation, consumer prices (annual %) | |
| Trade Openness | Control | Ratio of total trade (exports plus imports) to GDP | Trade (% of GDP) | |
| Financial Market Development | Control | Level of financial sector development measured by domestic credit provided to the private sector as a percentage of GDP, reflecting the availability of financial resources to the private sector | Domestic credit to private sector (% of GDP) | |
| Political Stability | Control | Index measuring the perceptions of political stability and the absence of politically motivated violence | Political Stability and Absence of Violence/Terrorism: Estimate | |
| Governance | Control | Indicator measuring perceptions of the quality of public services, policy implementation, civil service effectiveness, and government credibility | Government Effectiveness: Estimate |
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