Psychic Distance, Foreign Direct Investments and Host Country

Trufin Ovidiu Serafim ()
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Trufin Ovidiu Serafim: IEM, Bucharest, Romania

Ovidius University Annals, Economic Sciences Series, 2015, vol. XV, issue 1, 51-55

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.

Keywords: foreign direct investment; local firms; host country; psychic distance (search for similar items in EconPapers)
JEL-codes: F23 F43 O11 (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:ovi:oviste:v:xv:y:2015:i:1:p:51-55

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