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Factors Determining The Foreign Direct Investments - Theoretical Approaches

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  • Silvia-Elena ISACHI

    (”Victor Slavescu” Financial and Monetary Research Center, Romanian Academy, Romania)

Abstract

The central objective of this paper is to analyse the determinants of investments, as they have been described by the economic theory specific to the field of foreign direct investments. We consider that the matter of foreign direct investments and of their determinants as one of great importance both for the Romanian economy, and for the economy of other countries. It requires elaborate and multilateral approaches, not just on the side of the investors, but also on the side of the public entities that aim to stimulate these flows. The evolution of the foreign direct investments differs from one period to another due to several factors resulting from the evolution of the economic and social systems. The multinational companies have different aptitudes in the mater of making foreign direct investments, even in countries that are equivalent in terms of attractiveness for foreign direct investments. Besides to the traditional factors pertaining to the level of the market, population size and incomes, general economic performance of the economy, there also are other factors that may influence, under specific circumstances, the size of the foreign direct investments.

Suggested Citation

  • Silvia-Elena ISACHI, 2017. "Factors Determining The Foreign Direct Investments - Theoretical Approaches," Contemporary Economy Journal, Constantin Brancoveanu University, vol. 2(3), pages 67-82.
    • Handle: RePEc:brc:brccej:v:2:y:2017:i:3:p:67-82
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    References listed on IDEAS

    as
    1. Isabel Faeth, 2009. "Determinants Of Foreign Direct Investment – A Tale Of Nine Theoretical Models," Journal of Economic Surveys, Wiley Blackwell, vol. 23(1), pages 165-196, February.
    2. Kojima, Kiyoshi, 1973. "A Macroeconomic Approach to Foreign Direct Investment," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 14(1), pages 1-21, June.
    3. Bruce A. Blonigen, 2019. "Firm-Specific Assets and the Link Between Exchange Rates and Foreign Direct Investment," World Scientific Book Chapters, in: Foreign Direct Investment, chapter 3, pages 89-120, World Scientific Publishing Co. Pte. Ltd..
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    foreign direct investment; determinants; firms; the investment value;
    All these keywords.

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business

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