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Determinants Of Foreign Direct Investment: A Review

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  • SEBASTIAN TOCAR

    (Alexandru Ioan Cuza University of Iași, Str. Ștefan cel Mare, 58, 727590, Com. Vama (Sat Molid), jud. Suceava, România)

Abstract

When investigating foreign direct investment, scientists focus on different combinations of factors. They often emphasize the economic ones, while underestimating the others. Among the non-economic factors, there are several problems regarding the identification of relevant FDI determinants. The aim of this paper is the provision of a comprehensive review of the factors that are considered to impact the attraction of FDI and the identification of relevant FDI determinants. From the variety of factors, mentioned in the specialty literature, we identified eleven categories of FDI determinants. We also provided a comprehensive review of categorical and methodological interferences of the identified factors, proposing potential working hypothesis for future researches in the field. The final assessment of this study is the creation of a Synthesis of the factors influencing FDI.

Suggested Citation

  • Sebastian Tocar, 2018. "Determinants Of Foreign Direct Investment: A Review," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 21, pages 165-196, June.
    • Handle: RePEc:aic:revebs:y:2018:j:21:tocars
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    More about this item

    Keywords

    Foreign direct investment; FDI; FDI determinants; classification; synthesis;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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