Theories of Foreign Direct Investment

Imad A. Moosa

Chapter 2 in Foreign Direct Investment, 2002, pp 23-67 from Palgrave Macmillan

Abstract: Abstract The importance of and growing interest in the causes and consequences of FDI has led to the development of a number of theories that try to explain why MNCs indulge in FDI, why they choose one country in preference to another to locate their foreign business activity, and why they choose a particular entry mode. These theories also try to explain why some countries are more successful than others in obtaining FDI. Thus, some of the theories try to explain outward FDI (why MNCs choose to invest abroad), whereas others try to explain inward FDI (that is, a country’s propensity and ability to attract FDI).

Keywords: Exchange Rate; Foreign Direct Investment; Host Country; Home Country; Real Exchange Rate (search for similar items in EconPapers)
Date: 2002
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-4039-0749-3_2

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DOI: 10.1057/9781403907493_2

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