Project report (M.S.)--Virginia Polytechnic Institute and State University, 1990. / Vita. Abstract. Includes bibliographical references (leaf 100). Also available via the Internet.

This thesis within economics is examining the impact that remittances could have on the level of new small and medium sized enterprise start-ups. Remittances could be seen as a capital flow and would therefore increase the level of new SME start-ups but is this really the case? A model is developed with a panel data set over 45 countries all across the globe over a two year period. Six businesses environment variables are included in the regressions to see how the businesses environment affects the level of new SME start-ups. This model is also used when testing if the relationship between remittances and the level of new SMEs are stronger in the middle income countries than in the lower income countries. The descriptive statistics shows that both remittances and the number of new SME`s have increased from 2003 to 2005. The level of new SME`s have increased with a larger percentage share in the middle income countries relative to low income countries. The results from this thesis are somewhat difficult to interpret. Although there seems to be the case that remittances are not affecting the level of new SME start-ups when including all the countries in the same regression. As the countries are divided into two groups one can see a stronger relationship between remittances and the level of new SME started in the low income countries than in the middle income countries. One can also see that credit right and the cost of starting a new business is strongly related to the level of new SME.

<p>This paper investigates the impact of Economic Freedom on FDI inflows to developing countries and the Middle East in particular. Four forms of Economic Freedom were tested as variables determining FDI inflow. These four variables were Freedom from Corruption, Government Size, Trade Freedom and Investment Freedom. Cross-sectional data for twelve Middle Eastern countries and forty-three other developing countries were gathered for 1995 and 2006. It was revealed that only Trade Freedom and Invest-ment Freedom were significant in both Middle East and other regions. Apart from one case, the general positive sign of the significant variables confirms our hypothesis re-garding the positive effects of these Economic Freedoms on FDI inflows. Based on these findings it can be recommended to improve the investment environment and re-duce the barriers to trade in order to attract more FDI.</p>

This paper investigates the impact of Economic Freedom on FDI inflows to developing countries and the Middle East in particular. Four forms of Economic Freedom were tested as variables determining FDI inflow. These four variables were Freedom from Corruption, Government Size, Trade Freedom and Investment Freedom. Cross-sectional data for twelve Middle Eastern countries and forty-three other developing countries were gathered for 1995 and 2006. It was revealed that only Trade Freedom and Invest-ment Freedom were significant in both Middle East and other regions. Apart from one case, the general positive sign of the significant variables confirms our hypothesis re-garding the positive effects of these Economic Freedoms on FDI inflows. Based on these findings it can be recommended to improve the investment environment and re-duce the barriers to trade in order to attract more FDI.