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Foreign Direct Investments-A Literature Review

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  • LETSOU, ELENI
  • PANTELIDIS, PANTELIS

Abstract

- The purpose of this paper is to present the literature review of the theory of the Foreign Direct Investments and the basic context related to this study. It is a fact that markets’globalization and internationalization of economic relations which have existed during the recent years, have led to a rapid increase in trade flows, money and capital flows. In such field, the multinational enterprises play the most important role in the development of Foreign Direct Investments. Initially, there is a conceptual approach to the forms of international activities as well as the basic definitions concerning Foreign Direct Investments. Therefore, it follows a description of the reasons for the implementation of Foreign Direct Investments and their forms. The three main types of Foreign Direct Investments, the factors that lead an enterprise to their realization and the incentives to attract them are listed at this paper. The literature review for this study concludes with the major empirical studies conducted on Outward Foreign Direct Investments.

Suggested Citation

  • Letsou, Eleni & Pantelidis, Pantelis, 2020. "Foreign Direct Investments-A Literature Review," MPRA Paper 98429, University Library of Munich, Germany, revised 2020.
    • Handle: RePEc:pra:mprapa:98429
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    File URL: https://mpra.ub.uni-muenchen.de/98429/1/MPRA_paper_98429.doc
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    References listed on IDEAS

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    1. Ludema, Rodney D. & Wooton, Ian, 2000. "Economic geography and the fiscal effects of regional integration," Journal of International Economics, Elsevier, vol. 52(2), pages 331-357, December.
    2. Asiedu, Elizabeth, 2002. "On the Determinants of Foreign Direct Investment to Developing Countries: Is Africa Different?," World Development, Elsevier, vol. 30(1), pages 107-119, January.
    3. Peter J. Buckley & Mark Casson, 1985. "The Economic Theory of the Multinational Enterprise," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-05242-4.
    4. Mr. Ali J Al-Sadiq, 2013. "Outward Foreign Direct Investment and Domestic Investment: The Case of Developing Countries," IMF Working Papers 2013/052, International Monetary Fund.
    5. Barrell, Ray & Pain, Nigel, 1996. "An Econometric Analysis of U.S. Foreign Direct Investment," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 200-207, May.
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    More about this item

    Keywords

    Intex Terms- Foreign Direct Investments (FDI); Outward FDI.;

    JEL classification:

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

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