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LOCATION DETERMINANTS OF FDI: A LITERATURE REVIEW

Susana Assunção (), Rosa Forte () and Aurora Teixeira ()
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Susana Assunção: Faculdade de Economia, Universidade do Porto

FEP Working Papers from Universidade do Porto, Faculdade de Economia do Porto

Abstract: The development of economic activity and the rise in foreign direct investment (FDI) in recent decades has prompted a great deal of research into the phenomenon of multinational companies. A vast amount of empirical literature on FDI catalogues a long list of determinants that try to explain direct investment by multinational companies in a particular location, but it is noticeable that the results are not always consensual. This article provides a review of the theoretical approaches to and empirical studies on FDI in an attempt to single out the most robust factors for explaining the geographic distribution of FDI flows worldwide. It also suggests paths for future research in this area.

Keywords: FDI; determinants of FDI; literature review (search for similar items in EconPapers)
JEL-codes: F21 F23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cis, nep-his and nep-int
Date: 2011-10
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Persistent link: https://EconPapers.repec.org/RePEc:por:fepwps:433

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