Journal on Policy & Complex Systems Volume 5, Number 2, Fall 2019 | Page 73

Journal on Policy and Complex Systems
Figures 8-9 . Empirical forecasts .
Figure 10 . FDI , dependent variables , and recession .
ic recession affects the intention of foreign investment , particularly in recession years , which have a larger impact on FDI . Therefore , we can determine that when a recession takes place within a year , FDI declines more than in a non-recession year .
Moreover , urbanization is a global phenomenon crossing developed and economically developing countries . It not only leads to a higher density population in metropolitan areas , it also means more economic and political activity . It can be seen in Figure 10a that FDI has a positive effect on urbanization . When FDI increases by $ 1 million dollars , it is associated with a 26.136 % increase in urbanization . We can determine that FDI has a positive effect , improving urbanization in cities .
Furthermore , we can see in Figure 10a that FDI has a positive impact on the unemployment rate . When FDI increases by 1 %, it is associated with a decrease in the unemployment rate of 0.258 %. As Peri ( 2012 ) stated , as addi-
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