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Spatial econometrics is a subfield of econometrics
that deals with the treatment of spatial
interactions in regression models for cross
sectional and panel data. Chapter 1 employs spatial
econometrics techniques to estimate the impact of
bankruptcy regulation on small firm formation.I find
that the predicted probability of starting a
business is 25 percent higher in states with higher
bankruptcy exemptions than their neighbors relative
to states with lower exemptions than their
neighbors.
Chapter II studies how factors such as corruption
perception and the level of democracy influence
foreign direct investment to developing economies.
Our results suggest that less corrupt countries and
less democratic countries receive more foreign
direct investment. This paper is the first to show
that perceptions of corruption are highly correlated
with indices of economic freedom, but uncorrelated
with indices of political freedom. Hence less
corrupt countries which provide the right kind of
economic environment for investors receive more FDI
flows.
that deals with the treatment of spatial
interactions in regression models for cross
sectional and panel data. Chapter 1 employs spatial
econometrics techniques to estimate the impact of
bankruptcy regulation on small firm formation.I find
that the predicted probability of starting a
business is 25 percent higher in states with higher
bankruptcy exemptions than their neighbors relative
to states with lower exemptions than their
neighbors.
Chapter II studies how factors such as corruption
perception and the level of democracy influence
foreign direct investment to developing economies.
Our results suggest that less corrupt countries and
less democratic countries receive more foreign
direct investment. This paper is the first to show
that perceptions of corruption are highly correlated
with indices of economic freedom, but uncorrelated
with indices of political freedom. Hence less
corrupt countries which provide the right kind of
economic environment for investors receive more FDI
flows.