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On the Location Attractiveness of Emerging Countries for Foreign Direct Investments

Author

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  • Lucian BELASCU

    (Lucian Blaga University of Sibiu, Romania)

  • Aleksandar SHIVAROV

    (University of Economics Varna, Bulgaria)

Abstract

Our paper investigates the FDI attracting potential of emerging markets by in terms of their location attributes. We use Statistical cluster analysis to study the dynamic evolution of emerging markets’ clusters, based on country attributes that are relevant for the MNEs location decision. We find that countries tend to be grouped at a geographical level or depending on the various resources they possess, except for China that clusters independently. Also, there are numerous countries’ transitions from one cluster to another over the years, which indicate a natural process of changing location attributes and market development for many emerging economies.

Suggested Citation

  • Lucian BELASCU & Aleksandar SHIVAROV, 2016. "On the Location Attractiveness of Emerging Countries for Foreign Direct Investments," Expert Journal of Economics, Sprint Investify, vol. 4(2), pages 78-85.
    • Handle: RePEc:exp:econcs:v:4:y:2016:i:2:p:78-85
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    References listed on IDEAS

    as
    1. Chen, Maggie Xiaoyang & Moore, Michael O., 2010. "Location decision of heterogeneous multinational firms," Journal of International Economics, Elsevier, vol. 80(2), pages 188-199, March.
    2. Yuko Kinoshita & Nauro F. Campos, 2003. "Why Does Fdi Go Where it Goes? New Evidence From the Transition Economies," IMF Working Papers 2003/228, International Monetary Fund.
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    Cited by:

    1. Dewa Gede Sidan Raeskyesa & Reinardus Adhiputra Suryandaru, 2020. "Competitiveness and FDI Inflows in ASEAN Member Countries," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 13(1), pages 14-20, April.

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    More about this item

    Keywords

    foreign direct investments; location decision; emerging markets; cluster analysis;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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