For capital raised abroad. Finally, we find that the degree of capital raised abroad
is also a function of the same factors as the other internationalization variables (Table 6):
the more developed the economy, the greater the share of capital raised abroad. The other,
macro (inflation) and institutional (law and order) variables do not seem to affect the ratio
of capital raised abroad relative to the share of capital raised domestically. This is also
true for the other institutional variables, except for the financial liberalization variable that
is statistically significant positive. When taking the ratio of capital raised abroad to GDP,
and not to domestic capital raised, we find some more statistically significant results. Not
only is GDP per capita still statistically significant, but also inflation and law and order
become statistically significant in the expected way. Furthermore, the degree of financial
as well as capital account liberalization are positively associated with foreign capital
raised. These better results may be explained in part by the fact that the ratio of capital raised abroad to GDP is less volatile from year to year than the ratio of capital raised
abroad to capital raised domestically