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FDI theories. A location-based approach

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  • Oana Cristina Popovici
  • Adrian Cantemir Călin

Abstract

Given the importance of FDI for the economic growth of both home and host countries, the aim of this paper is to assess the importance granted to location advantages during the development of FDI theory. We start with the earliest theoretical directions as regards FDI location issues and extend our study to describing less debated theories, but of a particular importance for this theme. In this way, we have the opportunity to emphasize the changes in FDI location determinants. We find that a direction of the FDI theories’ expansion is due to the incorporation of new variables on location, although the location advantages are barely mentioned in the first explanations regarding the international activity of the firms

Suggested Citation

  • Oana Cristina Popovici & Adrian Cantemir Călin, 2014. "FDI theories. A location-based approach," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 17(53), pages 3-24, September.
    • Handle: RePEc:rej:journl:v:17:y:2014:i:53:p:3-24
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    Cited by:

    1. Oana Cristina Popovici & Adrian Cantemir Călin, 2016. "Economic Growth, Foreign Investments and Exports in Romania: A VECM Analysis," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 19(61), pages 95-122, September.
    2. Patricia Lindelwa Makoni, 2015. "Foreign Direct Investment – The Case of Botswana," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 11(4), pages 160-173, August.
    3. Popovici Oana Cristina, 2015. "Assessing Fdi Determinants In Cee Countries During And After Transition," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 113-122, July.
    4. CĂLIN Adrian Cantemir & POPOVICI Oana Cristina, 2015. "The Effects of Enhancing Competitiveness on FDI Inflows in CEE Countries," European Journal of Interdisciplinary Studies, Bucharest Economic Academy, issue 01, March.
    5. Raluca-Elena Hurduzeu, 2015. "Culture And Leadership: The Case Of Romania," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 18(56), pages 119-134, June,.
    6. Sushil K. Rai & Akhilesh K. Sharma, 2020. "Causal Nexus Between FDI Inflows and Its Determinants in SAARC Countries," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 21(2), pages 193-215, September.
    7. Ilona Berková, 2020. "Spatial analysis of financial health of companies," Economics Working Papers 2020-02, University of South Bohemia in Ceske Budejovice, Faculty of Economics.
    8. Muhammad Asif & Abdul Majid, 2018. "Institutional quality, natural resources and FDI: empirical evidence from Pakistan," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 8(4), pages 391-407, December.
    9. Brinda Sooreea-Bheemul & Uzma Shataz Rasool & Rajeev Sooreea, 2020. "Does Economic Freedom Matter to Foreign Direct Investment in Sub-Saharan Africa?," International Journal of Economics and Financial Issues, Econjournals, vol. 10(3), pages 195-207.
    10. Oana Cristina POPOVICI & Adrian Cantemir CĂLIN & Diana IVANA & Sorin DAN, 2021. "FDI Determinants Revisited: Extensive Evidence," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 103-123, December.
    11. Oana Cristina Popovici & Raluca Elena Hurduzeu (Rotariu), 2015. "Dissonance And Consonance Between The Competitiveness Of Organizations And The Regional Competitiveness," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 106-113, August.
    12. Enoch Kwaw-Nimeson & Ze Tian, 2023. "Institutional Quality, Foreign Direct Investment, and Regional Integration: Empirical Evidence From CEN-SAD," SAGE Open, , vol. 13(1), pages 21582440221, January.
    13. Zac Rafidi & George Verikios, 2022. "The Determinants of Foreign Direct Investment: A Review and Re‐Analysis of Evidence from Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 55(1), pages 71-90, March.

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    More about this item

    Keywords

    foreign direct investments; location; OLI paradigm; new economic geography; institutional theory;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • H10 - Public Economics - - Structure and Scope of Government - - - General

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