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September 5, 2025Emerging Science JournalOpen Access

Nonlinear and Heterogeneous Effect of Digitalization on Foreign Direct Investment: Evidence from Developing Countries

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Authors

THThị Lam HoLNLe Hong NgocTHThu Hoai Ho

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Overview

Analysis reveals that digitalization impacts foreign direct investment in developing nations, indicating varying effects across development levels.

Key Points

  • An inverted U-shaped relationship exists between digitalization and foreign direct investment in developing countries.
  • Initial positive effects of digitalization on foreign direct investment diminish beyond a specific threshold.
  • Dynamic Panel Threshold Regression and Method of Moment Quantile Regression were used to analyze the data.
  • Policymakers must balance digitalization levels with supportive governance and legal frameworks to attract foreign direct investment.

Cite This Study

Ho et al. (2025) studied this question.

synapsesocial.com/papers/68c23965b210217d6477b79bhttps://doi.org/10.28991/esj-2025-09-04-011
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