{"type":"script","doc_desc":{"producers":[{"name":"Reproducibility WBG","abbr":"DECDI","affiliation":"World Bank - Development Impact Department","role":"Verification and preparation of metadata"}],"prod_date":"2025-10-24","version":"1"},"project_desc":{"authoring_entity":[{"name":"Girum Abebe","affiliation":"World Bank","email":"gtefera@ifc.org"},{"name":"Deepa Chakrapani","affiliation":"World Bank","email":"dchakrapani@ifc.org"},{"name":"Sammy Fwaga","affiliation":"World Bank","email":"sfwaga@ifc.org"}],"title_statement":{"title":"Reproducibility package for Investment Policy Reforms And Foreign Direct Investment Inflows: A Case Study Of Ethiopia","idno":"RR_ETH_2025_445"},"data_statement":"All data sources are publicly available and included in the reproducibility package. (Open Data)","software":[{"name":"Stata","version":"18.5 MP"}],"scripts":[{"title":"Reproducibility package for Investment Policy Reforms And Foreign Direct Investment Inflows: A Case Study Of Ethiopia","date":"2025-10","notes":"Computational reproducibility verified by Development Impact (DECDI) Analytics team, World Bank.","instructions":"See README in reproducibility package.","file_name":"RR_ETH_2025_445","zip_package":"RR_ETH_2025_445.zip","dependencies":"Stata dependencies are listed in the ado folder. "}],"repository_uri":[{"name":"Reproducible Research Repository (World Bank)","uri":"https:\/\/reproducibility.worldbank.org"}],"production_date":"2025-10-24","abstract":"Foreign Direct Investment (FDI) has the potential to introduce much-needed capital and expertise to emerging and developing economies. To attract FDI, many countries have eased restrictions on foreign ownership in various sectors, reformed their institutions and set up investment promotion agencies. Until the mid-2010s, Ethiopia remained one of the few countries that resisted this trend, with several stringent restrictions in place on FDI entry and operations in the country. This study employs a \u201cSynthetic Control\u201d method to examine patterns in foreign capital inflows following a series of investment policy reforms that were substantively introduced in the mid-2010s (circa 2015). The study offers evidence that investment policy reforms contributed to a significant FDI inflow in Ethiopia, compared to what would have occurred in the absence of these policies. An alternative strategy that conservatively specifies the donor country pool using AI-assisted deep search technique changes the SCM donor pool weighting matrix, but the estimated policy effects largely remain robust to this specification. The findings highlight the importance of targeted reforms in promoting FDI inflow in developing countries.","geographic_units":[{"name":"Ethiopia","code":"ETH"}],"keywords":[{"name":"Ethiopia"},{"name":"Fdi"},{"name":"Policy Reforms"},{"name":"Scm"},{"name":"Placebo"}],"topics":[{"id":"C21","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","vocabulary":"Journal of Economic Literature (JEL)","name":"Cross-Sectional Models \u2022 Spatial Models \u2022 Treatment Effect Models \u2022 Quantile Regressions","parent_id":"C2"},{"id":" F21","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","vocabulary":"Journal of Economic Literature (JEL)","name":"International Investment \u2022 Long-Term Capital Movements","parent_id":"F2"},{"id":" O55","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","vocabulary":"Journal of Economic Literature (JEL)","name":"Africa","parent_id":"O5"}],"output":[{"type":"Working Paper","description":"Policy Research Working Papers (PRWP)","title":"Investment Policy Reforms And Foreign Direct Investment Inflows: A Case Study Of Ethiopia"}],"language":[{"name":"English","code":"EN"}],"disclaimer":"The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development\/The World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.","license":[{"name":"Modified BSD3","uri":"https:\/\/opensource.org\/license\/bsd-3-clause\/"}],"contacts":[{"name":"Girum Abebe","affiliation":"World Bank","email":"gtefera@ifc.org"},{"name":"Reproducibility WBG","affiliation":"World Bank","email":"reproducibility@worldbank.org"}],"datasets":[{"name":"UNCTAD FDI stocks and flows","access_type":"Data is publicly available and included in the reproducibility package.","uri":"https:\/\/unctadstat.unctad.org\/datacentre\/dataviewer\/","note":"Source: UN Trade and Development (UNCTAD).\nData on inward FDI flows in US$ at current prices in millions was downloaded for Ethiopia, LDCs (Least developed countries)\tLLDCs (Landlocked developing countries)\tLow-income developing economies for 2000-2023 and divided by GDP in US$ at current prices in millions to estimate the FDI inflow as a percentage of GDP. The result was saved in the file \"Data\/UNCTAD_FDI.csv\".\n","license":"Creative Commons Attribution 3.0 IGO","license_uri":"https:\/\/unctadstat.unctad.org\/UnctadStatMetadata\/Documentation\/UNCTAD_CreativeCommonsLicense3.0_IGO_EN.pdf","citation":"UN Trade and Development (UNCTAD).\nn.d.\n\"UNCTAD FDI stocks and flows [dataset]\".\nAccess on March 28, 2025.\nhttps:\/\/unctadstat.unctad.org\/datacentre\/dataviewer\/"},{"name":"UCDP\/PRIO Armed Conflict Dataset version 25.1","note":"Source: Uppsala Conflict Data Program (UCDP), Peace Research Institute Oslo (PRIO).\nData was accessed on August 28, 2025.\nData file: \"UcdpPrioConflict_v25_1.dta\".","license":"Creative Commons Attribution 4.0 International license","access_type":"Data is publicly available and included in the reproducibility package.","license_uri":"https:\/\/creativecommons.org\/licenses\/by\/4.0\/deed.en","uri":"https:\/\/ucdp.uu.se\/downloads\/index.html#armedconflict","citation":"Uppsala Conflict Data Program (UCDP), Peace Research Institute Oslo (PRIO).\nn.d.\n\"UCDP\/PRIO Armed Conflict Dataset version 25.1 [dataset]\".\nAccessed on August 28, 2025.\nhttps:\/\/ucdp.uu.se\/downloads\/index.html#armedconflict"},{"name":"Worldwide Governance Indicators","license":"Creative Commons Attribution 4.0 (CC-BY 4.0)","license_uri":"https:\/\/datacatalog.worldbank.org\/public-licenses#cc-by","uri":"https:\/\/www.worldbank.org\/en\/publication\/worldwide-governance-indicators","access_type":"Data is publicly available and included in the reproducibility package.","note":"Source: World Bank.\nData file: \"Data Compilation\/Government Stability Measures\/wgidataset.dta\".\nData was accessed on August 28, 2025.","citation":"World Bank.\n2024.\n\"Worldwide Governance Indicators [dataset]\".\nDataset version: 2024 update.\nAccessed on August 28, 2025.\nhttps:\/\/www.worldbank.org\/en\/publication\/worldwide-governance-indicators"},{"name":"World Development Indicators","note":"Source: World Bank.\nData for the indicators GDP, GDP growth, GDP per capita, annual inflation, FDI inflow, and FDI stock for all economies for 2000-2023 was manually downloaded from the data URL and saved in the file: \"Data Compilation\/Original\/finaldatset30_COPY.xlsx\".\nData was accessed in August 28, 2025.","access_type":"Data is publicly available and included in the reproducibility package.","license":"Creative Commons Attribution 4.0 International License with additional terms of use specified in the license URL","license_uri":"https:\/\/www.worldbank.org\/en\/about\/legal\/terms-of-use-for-datasets","uri":"https:\/\/databank.worldbank.org\/source\/world-development-indicators","citation":"World Bank.\nn.d.\n\"World Development Indicators [dataset]\".\nIndicators accessed: GDP, GDP growth, GDP per capita, annual inflation, FDI inflow, and FDI stock. \nAccessed in August 28, 2025.\nhttps:\/\/databank.worldbank.org\/source\/world-development-indicators"}],"technology_requirements":"Runtime: 15 minutes.","technology_environment":"Paper exhibits were reproduced on a computer with the following specifications:\n\u2022 OS: Windows 11 Enterprise, version 24H2\n\u2022 Processor: Intel(R) Core(TM) Ultra 7 165U (2.10 GHz)\n\u2022 Memory available: 32 GB","reproduction_instructions":"**1. Run the Stata code:** Edit the file path in the global `path` in line 5 of the do-file \"main\" and run it.\n**2. Reproduce the R environment:** The R environment for the code can be reproduced using the \"renv.lock\" file included in the reproducibility package. Alternatively, users could install all dependencies for the code; these are listed in the \"renv.lock\" file.\n**3. Run the R code:** Open the R script \"Alternative_donor_pool.R\" and run it."},"tags":[{"tag":"DOI"},{"tag":"Open Code"},{"tag":"Open Data"}],"schematype":"script"}