Comparative Analysis of Governance Quality’s Impact on FDI in EU Countries: Insights from Regression and Panel Models

The article is dedicated to investigating the impact of institutional quality on the processes of foreign direct investment (FDI) in European Union (EU) countries. To expand existing research, a mathematical-statistical approach implemented in Python is used. The assessment of the influence of governance quality on FDI is based on longitudinal data, utilizing the Worldwide Governance Indicators (WGI). The study employs regression analysis methods, including multiple and panel regressions. The research results can contribute to understanding the influence of institutional quality on FDI attraction in various types of EU member countries and identifying effective policies for attracting foreign investment.