| Variable | (1) | (2) |
| L1. Inward FDI | 0.933662 | 0.935110 |
| (0.003399)*** | (0.002629)*** | |
| Tourists | 5.896787 | 5.454510 |
| (0.060697)*** | (0.029855)*** | |
| GDP | 0.000533 | 0.000318 |
| (5.29E−05)*** | (4.33E−05)*** | |
| Fair competition | −132.8082 | −213.4359 |
| (16.01520)*** | (2.428945)*** | |
| Corruption | −2547.210 | −2723.124 |
| (59.86042)*** | (33.36720)*** | |
| EPA | −1241.959 |
|
| (50.67664)*** |
| |
| AR(1) | 0.4671 | 0.2556 |
| AR(2) | 0.5536 | 0.3456 |
| Sargan statistic | 0.6556 | 0.6970 |
| No. of observation | 276 | 276 |