The Moderating Effect of Business Law on the Relationship between Foreign Direct Investment and Economic Growth in European Countries
DOI:
https://doi.org/10.61506/01.00441Keywords:
FDI, Economic Growth, Business Law, EU, PLS-SEMAbstract
The influence of Business law on the link between FDI and Economic growth of European countries was the focus of this research. To test these relationships, panel data from 28 members states of the European Union within the time horizon of 2010–2024 was used, and the analysis was conducted with help of Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings showed that FDI had a positive association with economic growth though the degree was mediated by business law. This evidence also showed that the beneficial effect of FDI on economic growth is in higher proportion in countries with better legal structures of business. Such insights suggest the need for sound business laws that enhance opportunities for foreign investment as a tool for the growth of European countries’ economy.
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