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Psychic Distance, Foreign Direct Investments and Host Country

Author

Listed:
  • Trufin Ovidiu Serafim

    (IEM, Bucharest, Romania)

Abstract

This article aims to investigate the relationship between FDI and the host country's development through the concept of psychic distance. Foreign direct investments influence positively and negatively local firms and finally contributes for development of the host country. As greater is physical distance, a smaller volume of foreign direct investments are between host country and investing country. By analyzing the literature in recent years we can affirm that foreign direct investments impact on the host country is to accelerate the development and decrease psychic distance.

Suggested Citation

  • Trufin Ovidiu Serafim, 2015. "Psychic Distance, Foreign Direct Investments and Host Country," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 51-55, May.
    • Handle: RePEc:ovi:oviste:v:xv:y:2015:i:1:p:51-55
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    More about this item

    Keywords

    foreign direct investment; local firms; host country; psychic distance;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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