Signal The GOI is said to explain 66.2% of cross-country variation in FDI per capita

Summary

The Milken Institute tests whether its index tracks real capital movements and reports a strong positive link. Across advanced and developing economies, GOI scores line up with foreign capital inflows over 2020 to 2024. The index accounts for more than 66.2 percent of the cross-country variation in foreign direct investment per capita in that period. The fit is tighter still for total inflows, which add portfolio and bank-related flows, where the share of variation explained exceeds 72.5 percent. The institute presents these figures as evidence that the updated index remains a useful explanatory tool at different stages of development, though they describe an association rather than proven causation.