IDEAS home Printed from
   My bibliography  Save this article

Trends, Patterns and Determinants of Australian Foreign Direct Investment


  • Kishor Sharma
  • Yapa Bandara


The aim of this paper is to present empirical evidence of the determinants of Australian foreign direct investment using hypotheses drawn from an investment demand model, new trade theory and institutional economics. The findings suggest that countries which are open, have a large domestic market, and have a similar language and culture to Australia's attract most of its foreign investment. There is also evidence to suggest that countries in regional blocs tend to attract Australian investment, possibly opening up opportunities for investors to capture a large regional market. Although difficult to prove statistically, the findings also suggest that countries that are economically more stable and have strong institutional credibility tend to attract Australian investment.

Suggested Citation

  • Kishor Sharma & Yapa Bandara, 2010. "Trends, Patterns and Determinants of Australian Foreign Direct Investment," Journal of Economic Issues, Taylor & Francis Journals, vol. 44(3), pages 661-676.
  • Handle: RePEc:mes:jeciss:v:44:y:2010:i:3:p:661-676
    DOI: 10.2753/JEI0021-3624440305

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Bhupatiraju S., 2014. "Multi-level determinants of inward FDI ownership," MERIT Working Papers 085, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:jeciss:v:44:y:2010:i:3:p:661-676. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.