IDEAS home Printed from https://ideas.repec.org/a/mgs/ijmsba/v1y2015i5p81-89.html
   My bibliography  Save this article

Strategies and Determinants of Foreign Direct Investment (FDI) Attraction

Author

Listed:
  • Abdoulaye Oury Bah
  • Xie Kefan
  • Oji-Okoro Izuchukwu

    (School of Management and School of Economics, Wuhan University of Technology, Wuhan, P.R.China)

Abstract

The globalization of the world economy has created enormous opportunities as well as promotion efforts to attract foreign direct investment (FDI). The goal of this study is to detect and analyze management strategy to attract foreign direct investment. We conduct a detailed literature review and identify different strategies for capital issues and benefits of FDI. There are several trends that drive FDI like availability of natural resources, cheap labor markets and low cost which must be considered in order to take appropriate measures to attract more investments. The main contribution of the study is that it builds a theoretical basis which is useful for managers, entrepreneurs and decision-makers to make rational decisions on the choice of location for investments.

Suggested Citation

  • Abdoulaye Oury Bah & Xie Kefan & Oji-Okoro Izuchukwu, 2015. "Strategies and Determinants of Foreign Direct Investment (FDI) Attraction," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 1(5), pages 81-89, April.
    • Handle: RePEc:mgs:ijmsba:v:1:y:2015:i:5:p:81-89
    DOI: 10.18775/ijmsba.1849-5664-5419.2014.15.1007
    as

    Download full text from publisher

    File URL: http://researchleap.com/wp-content/uploads/2015/04/7.-Strategies-and-Determinants-of-Foreign-Direct-Investment-FDI-Attraction.pdf
    Download Restriction: no
    File URL: http://researchleap.com/strategies-and-determinants-of-foreign-direct-investment-fdi-attraction/
    Download Restriction: no
    File URL: https://libkey.io/10.18775/ijmsba.1849-5664-5419.2014.15.1007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bruce Kogut, 1988. "Joint ventures: Theoretical and empirical perspectives," Strategic Management Journal, Wiley Blackwell, vol. 9(4), pages 319-332, July.
    2. J Myles Shaver, 1998. "Do Foreign-Owned and U.S.-Owned Establishments Exhibit the Same Location Pattern in U.S. Manufacturing Industries?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(3), pages 469-492, September.
    3. Kenneth P. Thomas, 2011. "Regulating Investment Attraction: Canada's Code of Conduct on Incentives in a Comparative Context," Canadian Public Policy, University of Toronto Press, vol. 37(3), pages 343-357, September.
    4. Birkinshaw, Julian & Braunerhjelm, Pontus & Holm, Ulf & Terjesen, Siri, 2006. "Why Do Some Multinational Corporations Relocate Their Headquarters Overseas?," Working Paper Series in Economics and Institutions of Innovation 54, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    5. John H Dunning, 1998. "Location and the Multinational Enterprise: A Neglected Factor?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(1), pages 45-66, March.
    6. Bruce Blonigen, 2005. "A Review of the Empirical Literature on FDI Determinants," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 33(4), pages 383-403, December.
    7. Mustafa Sinanagic & Beriz Civic & Alma Kamaric, 2012. "Institutional Marketing Communications In Role Of Attracting Foreign Direct Investments To Bosnia And Herzegovina," Economic Review: Journal of Economics and Business, University of Tuzla, Faculty of Economics, vol. 10(1), pages 47-62.
    8. Jan Johanson & Jan-Erik Vahlne, 1977. "The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 8(1), pages 23-32, March.
    9. Jean-Louis Mucchielli, 1991. "Alliances stratégiques et firmes multinationales : une nouvelle théorie pour de nouvelles formes de multinationalisation," Revue d'Économie Industrielle, Programme National Persée, vol. 55(1), pages 118-134.
    10. John Francis & CongCong Zheng & Ananda Mukherji, 2009. "An Institutional Perspective on Foreign Direct Investment," Management International Review, Springer, vol. 49(5), pages 565-583, October.
    11. Mutinelli, Marco & Piscitello, Lucia, 1998. "The entry mode choice of MNEs: an evolutionary approach," Research Policy, Elsevier, vol. 27(5), pages 491-506, September.
    12. John H Dunning, 2009. "Location and the multinational enterprise: John Dunning's thoughts on receiving the Journal of International Business Studies 2008 Decade Award," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(1), pages 20-34, January.
    13. Kotabe, Masaaki, 1993. "The promotional roles of the state government and Japanese manufacturing direct investment in the United States," Journal of Business Research, Elsevier, vol. 27(2), pages 131-146, June.
    14. Philip McCann & Ram Mudambi, 2004. "The Location Behavior of the Multinational Enterprise: Some Analytical Issues," Growth and Change, Wiley Blackwell, vol. 35(4), pages 491-524, September.
    15. Vahlne, Jan-Erik & Ivarsson, Inge & Johanson, Jan, 2011. "The tortuous road to globalization for Volvo's heavy truck business: Extending the scope of the Uppsala model," International Business Review, Elsevier, vol. 20(1), pages 1-14, February.
    16. Bevan, Alan A. & Estrin, Saul, 2004. "The determinants of foreign direct investment into European transition economies," Journal of Comparative Economics, Elsevier, vol. 32(4), pages 775-787, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Abdelmounaim Lahrech & Sami Zaki Alabdulwahab & Safa Bouayach, 2020. "Nation Branding and How It Is Related to Foreign Direct Investment Inflows," International Journal of Economics and Financial Issues, Econjournals, vol. 10(2), pages 248-255.
    2. Tina Golob Šušteršič & Katja Zajc Kejžar, 2020. "The role of skilled migrant workers in FDI-related technology transfer," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 156(1), pages 103-132, February.
    3. Gavkhar Bekmurodova, 2020. "Theoretical Features of FDI (Foreign Direct Investment) and its Influence to Economic Growth," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 6(2), pages 33-39, January.
    4. Seunghyun Kim & Byungchul Choi, 2020. "The Impact of the Technological Capability of a Host Country on Inward FDI in OECD Countries: The Moderating Roles of Institutional Quality," Sustainability, MDPI, vol. 12(22), pages 1-18, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nielsen, Bo Bernhard & Asmussen, Christian Geisler & Weatherall, Cecilie Dohlmann, 2017. "The location choice of foreign direct investments: Empirical evidence and methodological challenges," Journal of World Business, Elsevier, vol. 52(1), pages 62-82.
    2. Henry Wai‐Chung Yeung, 2009. "Transnational Corporations, Global Production Networks, and Urban and Regional Development: A Geographer's Perspective on Multinational Enterprises and the Global Economy," Growth and Change, Wiley Blackwell, vol. 40(2), pages 197-226, June.
    3. Ramírez-Alesón, Marisa & Fleta-Asín, Jorge, 2016. "Is the Importance of Location Factors Different Depending on the Degree of Development of the Country?," Journal of International Management, Elsevier, vol. 22(1), pages 29-43.
    4. Iavor Marangozov, 2005. "From Practice to Theory of the International Joint Ventures," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 44-77.
    5. Hak Yeung & Jürgen Huber, 2022. "Further Evidence on China’s B&R Impact on Host Countries’ Quality of Institutions," Sustainability, MDPI, vol. 14(9), pages 1-17, May.
    6. Chidlow, Agnieszka & Holmström-Lind, Christine & Holm, Ulf & Tallman, Steve, 2015. "Do I stay or do I go? Sub-national drivers for post-entry subsidiary development," International Business Review, Elsevier, vol. 24(2), pages 266-275.
    7. Teresa da Silva Lopes & Mark Casson & Geoffrey Jones, 2019. "Organizational innovation in the multinational enterprise: Internalization theory and business history," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(8), pages 1338-1358, October.
    8. Bartels, Frank L. & Napolitano, Francesco & Tissi, Nicola E., 2014. "FDI in Sub-Saharan Africa: A longitudinal perspective on location-specific factors (2003–2010)," International Business Review, Elsevier, vol. 23(3), pages 516-529.
    9. Powell, K. Skylar & Lim, Eunah, 2017. "Investment motive as a moderator of cultural-distance and relative knowledge relationships with foreign subsidiary ownership structure," Journal of Business Research, Elsevier, vol. 70(C), pages 255-262.
    10. Kent Ngan-Cheung Hui & Yuanyuan Gong & Qi Cui & Naipeng Jiang, 2022. "Foreign investment or divestment as a near-term solution to performance shortfalls? The moderating role of vicarious learning," Asia Pacific Journal of Management, Springer, vol. 39(4), pages 1481-1509, December.
    11. Dorothee J. Feils & Manzur Rahman, 2011. "The Impact of Regional Integration on Insider and Outsider FDI," Management International Review, Springer, vol. 51(1), pages 41-63, February.
    12. Robert-Nicoud, Frédéric & Olarreaga, Marcelo & Carrère, Céline & Fugazza, Marco, 2016. "On the heterogeneous effect of trade on unemployment," CEPR Discussion Papers 11540, C.E.P.R. Discussion Papers.
    13. Wei, Tian & Clegg, Jeremy & Ma, Lei, 2015. "The conscious and unconscious facilitating role of the Chinese government in shaping the internationalization of Chinese MNCs," International Business Review, Elsevier, vol. 24(2), pages 331-343.
    14. Bailey, Nicholas & Li, Sali, 2015. "Cross-national Distance and FDI: The Moderating Role of Host Country Local Demand," Journal of International Management, Elsevier, vol. 21(4), pages 267-276.
    15. Tiago Loncan, 2021. "The Effects of Project Scale on FDI Location Choices: Evidence from Emerging Economies," Management International Review, Springer, vol. 61(2), pages 157-205, April.
    16. Burpitt, William J. & Rondinelli, Dennis A., 2004. "Foreign-owned companies' entry and location strategies in a U.S. market: a study of manufacturing firms in North Carolina," Journal of World Business, Elsevier, vol. 39(2), pages 136-150, May.
    17. Mehmet Demirbag & Martina McGuinness & Hüseyin Altay, 2010. "Perceptions of Institutional Environment and Entry Mode," Management International Review, Springer, vol. 50(2), pages 207-240, April.
    18. Jingtao Yi & Shuang Meng & Craig D. Macaulay & Mike W. Peng, 2019. "Corruption and foreign direct investment phases: The moderating role of institutions," Journal of International Business Policy, Palgrave Macmillan, vol. 2(2), pages 167-181, June.
    19. Duanmu, Jing-Lin, 2014. "A race to lower standards? Labor standards and location choice of outward FDI from the BRIC countries," International Business Review, Elsevier, vol. 23(3), pages 620-634.
    20. Pradhan, Jaya Prakash & Singh, Neelam, 2010. "Group Affiliation and Location of Indian Firms’ Foreign Acquisitions," MPRA Paper 24018, University Library of Munich, Germany.

    More about this item

    Keywords

    Foreign Direct Investment; FDI; FDI Attraction; FDI Strategy and Determinants; IDE;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mgs:ijmsba:v:1:y:2015:i:5:p:81-89. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bojan Obrenovic (email available below). General contact details of provider: https://researchleap.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.