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Determinants of FDI in Developing Countries: Has Globalization Changed the Rules of the Game?

  • Peter Nunnenkamp

There is a startling gap between, allegedly, globalization-induced changes in international competition for foreign direct investment (FDI) and recent empirical evidence on the relative importance of determinants of FDI in developing countries. We show that surprisingly little has changed since the late 1980s. Traditional market-related determinants are still dominant factors. Among non-traditional FDI determinants, only the availability of local skills has clearly gained importance. As concerns the interface between trade policy and FDI, we find that the tariff jumping motive for FDI had lost much of its relevance well before globalization became a hotly debated issue.

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File URL: https://www.ifw-members.ifw-kiel.de/publications/determinants-of-fdi-in-developing-countries-has-globalization-changed-the-rules-of-the-game/kap1122.pdf
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Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1122.

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Length: 44 pages
Date of creation: Jul 2002
Date of revision:
Handle: RePEc:kie:kieliw:1122
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