Determinants of FDI in Developing Countries: Has Globalization Changed the Rules of the Game?
AbstractThere is a startling gap between, allegedly, globalization-induced changes in international competition for foreign direct investment (FDI) and recent empirical evidence on the relative importance of determinants of FDI in developing countries. We show that surprisingly little has changed since the late 1980s. Traditional market-related determinants are still dominant factors. Among non-traditional FDI determinants, only the availability of local skills has clearly gained importance. As concerns the interface between trade policy and FDI, we find that the tariff jumping motive for FDI had lost much of its relevance well before globalization became a hotly debated issue.
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Bibliographic InfoPaper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1122.
Length: 44 pages
Date of creation: Jul 2002
Date of revision:
foreign direct investment; market size; cost factors; human capital; openness to trade; globalization;
Other versions of this item:
- Nunnenkamp, Peter & Spatz, Julius, 2002. "Determinants of FDI in Developing Countries: Has Globalization Changed the Rules of the Game?," Open Access Publications from Kiel Institute for the World Economy 2976, Kiel Institute for the World Economy (IfW).
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
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