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Toward a Unifying Model of Foreign Direct Investment Determinants

In: Mergers and Acquisitions as the Pillar of Foreign Direct Investment


  • Aristidis Bitzenis
  • Pyrros Papadimitriou
  • Vasileios A. Vlachos


This chapter presents the evolution of theories that explain the activity of multinational enterprises (MNEs) and the development of foreign direct investment (FDI). The theoretical approaches that today concern the determinants of FDI are rooted in classical theories of international trade. From the theory of international trade, the literature on the activity of MNEs emerged, which ultimately developed into theories of FDI. Current approaches have been greatly differentiated since the early classical theories were applicable. Their evolution to date, along with the complexity of the modern global business environment, shows that it is impossible for a single approach to develop an explanation for the present activity of MNEs. The current complexity of the international business environment requires a universal—perhaps unifying—all-encompassing model of FDI determinants, which would assist policy makers and managers on an international level.

Suggested Citation

  • Aristidis Bitzenis & Pyrros Papadimitriou & Vasileios A. Vlachos, 2012. "Toward a Unifying Model of Foreign Direct Investment Determinants," Palgrave Macmillan Books, in: Aristidis Bitzenis & Vasileios A. Vlachos & Pyrros Papadimitriou (ed.), Mergers and Acquisitions as the Pillar of Foreign Direct Investment, chapter 0, pages 41-65, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-1-137-03155-6_4
    DOI: 10.1057/9781137031556_4

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