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Cultural logic of German foreign direct investment (FDI) in service sector

Author

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  • Bhabani Shankar Nayak

    (Coventry University)

  • Dominik Scheib

    (Lidl Stiftung & Co. KG)

Abstract

Major studies on FDI looks at location, technology, policy, availability of natural resources, skilled labor, state support, climate, political and economic advantages for investment decisions. There are few studies that look at cultural factors affecting FDI decisions in service. This paper provides qualitative analysis of the impact of national culture on the flow of foreign direct investment in the service sector within the context of Germany. In particular, the paper discusses the cultural logic of German foreign direct investment in the service sector. It argues that inward FDI in the service sector was actually substantially more affected by cultural distance compared to outward FDI. The study finds that it is important to distinguish between inward and outward FDI to assess the cultural logic of German FDI in the service sector.

Suggested Citation

  • Bhabani Shankar Nayak & Dominik Scheib, 2020. "Cultural logic of German foreign direct investment (FDI) in service sector," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-13, December.
    • Handle: RePEc:spr:jecstr:v:9:y:2020:i:1:d:10.1186_s40008-020-00203-7
    DOI: 10.1186/s40008-020-00203-7
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    References listed on IDEAS

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    Cited by:

    1. Izadi, Selma & Rashid, Mamunur & Izadi, Parviz, 2023. "Direct and indirect influence of national culture on foreign direct investment," Research in International Business and Finance, Elsevier, vol. 66(C).

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    Keywords

    Culture; FDI; German; Service sector;
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