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The Attractiveness of Countries to Foreign Direct Investors

Author

Listed:
  • Sharon Jackson

    (Faculty of Business, School of Economics and Finance, Queensland University of Technology, Gardens Point Campus, GPO Box 2434, Brisbane QLD 4001)

  • Stefan Markowski

    (School of Economics and Management, University College, Australian Defence Force Academy, University of New South Wales, Canberra ACT 2600, E-mail s-markowski@adfa.oz.au)

Abstract

The present paper is concerned with the attractiveness of countries to direct foreign investments, that is, the host country characteristics that attract direct foreign investment (FDI). It focuses on two types of national characteristics —those that attract inflows of all foreign investment (intermediate products), including FDI, that is, mobility factors; and those that influence the modality of these inflows, that is, reflect the preference for FDI rather than other forms of foreign investment or ‘straight (unbundled) imports of intermediate products by indigenous firms (modality factors)’. The paper reports preliminary findings from a study of plausible determinants of FDI inflows into a sample of 25 countries.

Suggested Citation

  • Sharon Jackson & Stefan Markowski, 1996. "The Attractiveness of Countries to Foreign Direct Investors," Australian Journal of Management, Australian School of Business, vol. 21(2), pages 113-138, December.
  • Handle: RePEc:sae:ausman:v:21:y:1996:i:2:p:113-138
    DOI: 10.1177/031289629602100202
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    References listed on IDEAS

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    1. Reinhilde Veugelers, 1991. "Locational Determinants and Ranking of Host Countries: An Empirical Assessment," Kyklos, Wiley Blackwell, vol. 44(3), pages 363-382, August.
    2. Stephen B Tallman, 1988. "Home Country Political Risk and Foreign Direct Investment in the United States," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(2), pages 219-234, June.
    3. Culem, Claudy G., 1988. "The locational determinants of direct investments among industrialized countries," European Economic Review, Elsevier, vol. 32(4), pages 885-904, April.
    4. William H Davidson, 1980. "The Location of Foreign Direct Investment Activity: Country Characteristics and Experience Effects," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 11(2), pages 9-22, June.
    5. Anjomani, Ardeshir & Hariri, Vida, 1992. "Migration Stock and the Issue of Competing and Complementary Flows in United States Interstate Migration," Journal of Population Economics, Springer;European Society for Population Economics, vol. 5(2), pages 87-100, April.
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    Cited by:

    1. Toma Lankauskienė & Manuela Tvaronavičienė, 2011. "Interrelation of countries' developmental level and foreign direct investments performance," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 12(3), pages 546-565, March.

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