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The location choice of foreign direct investments: Empirical evidence and methodological challenges

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  • Nielsen, Bo Bernhard
  • Asmussen, Christian Geisler
  • Weatherall, Cecilie Dohlmann

Abstract

The choice of location of foreign direct investments (FDI) by multinational enterprises (MNEs) has been the subject of intense scrutiny for decades and continues to be so. Yet, the vast diversity in methodological approaches, levels of analysis, and empirical evidence precludes a comprehensive understanding of the phenomenon. We review and evaluate 153 quantitative studies on FDI location choice over four decades from 1976 to 2015 across multiple disciplines, including international business, management, economics, urban and regional studies, and economic geography. Our review provides a comprehensive analysis of the empirical evidence and methodological implications to guide future empirical research on FDI location choice.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:worbus:v:52:y:2017:i:1:p:62-82
    DOI: 10.1016/j.jwb.2016.10.006
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    Cited by:

    1. Melissa Dell & Nathaniel Lane & Pablo Querubin, 2017. "The Historical State, Local Collective Action, and Economic Development in Vietnam," NBER Working Papers 23208, National Bureau of Economic Research, Inc.
    2. repec:eee:jbrese:v:82:y:2018:i:c:p:202-212 is not listed on IDEAS
    3. repec:eee:iburev:v:27:y:2018:i:4:p:803-813 is not listed on IDEAS
    4. repec:pal:jintbs:v:49:y:2018:i:4:d:10.1057_s41267-017-0099-3 is not listed on IDEAS
    5. Davide Castellani & Katiuscia Lavoratori, 2017. "Location of R&D abroad. An analysis on Global Cities," John H Dunning Centre for International Business Discussion Papers jhd-dp2017-03, Henley Business School, Reading University.

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