IDEAS home Printed from https://ideas.repec.org/h/ito/pchaps/212528.html
   My bibliography  Save this book chapter

Business Climate: When Weakness Means Foreign Direct Divestment

In: Foreign Direct Investment Perspective through Foreign Direct Divestment

Author

Listed:
  • Omar E. Garcia-Bolivar

Abstract

This chapter is about weak business climate as a cause for foreign direct divestment. The aim is to show the connection between a poor business climate and foreign direct divestment. The methodology used entails a review of the different factors of the business climate such as the ease to do business, corruption, and rule of law. A review of the UNCTAD foreign direct investment flow as compared to the business climate indicators to determine a pattern is also part of the methodology. The chapter highlights the externalities of foreign direct divestment and suggests some ideas to overcome the global negative impact of foreign direct divestment as it is estimated to be significant in the aftermath of the COVID-19 pandemic. The conclusion is that foreign direct divestments can occur for different factors, some internal and some external. Weak business climates seem to play a role in a decision to divest an investment but there is no direct correlation.

Suggested Citation

  • Omar E. Garcia-Bolivar, 2021. "Business Climate: When Weakness Means Foreign Direct Divestment," Chapters, in: Anita Macek (ed.), Foreign Direct Investment Perspective through Foreign Direct Divestment, IntechOpen.
    • Handle: RePEc:ito:pchaps:212528
    DOI: 10.5772/intechopen.93291
    as

    Download full text from publisher

    File URL: https://www.intechopen.com/chapters/73146
    Download Restriction: no
    File URL: https://libkey.io/10.5772/intechopen.93291?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    business climate; foreign direct divestment; weak business climate; factors of foreign direct divestment; universal wealth fund;
    All these keywords.

    JEL classification:

    • F00 - International Economics - - General - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ito:pchaps:212528. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Slobodan Momcilovic (email available below). General contact details of provider: http://www.intechopen.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.