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Theories of Foreign Direct Investment

In: Foreign Direct Investment

Author

Listed:
  • Imad A. Moosa

Abstract

The importance of and growing interest in the causes and consequences of FDI has led to the development of a number of theories that try to explain why MNCs indulge in FDI, why they choose one country in preference to another to locate their foreign business activity, and why they choose a particular entry mode. These theories also try to explain why some countries are more successful than others in obtaining FDI. Thus, some of the theories try to explain outward FDI (why MNCs choose to invest abroad), whereas others try to explain inward FDI (that is, a country’s propensity and ability to attract FDI).

Suggested Citation

  • Imad A. Moosa, 2002. "Theories of Foreign Direct Investment," Palgrave Macmillan Books, in: Foreign Direct Investment, chapter 2, pages 23-67, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-4039-0749-3_2
    DOI: 10.1057/9781403907493_2
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    Cited by:

    1. Maune Alexander & Matanda Ephraim & Chitombo Ezekiel, 2023. "Foreign Direct Investment, Gross Capital Formation, Foreign Remittances, and Economic Growth in Zimbabwe," Folia Oeconomica Stetinensia, Sciendo, vol. 23(2), pages 261-274, December.
    2. Tanattrin Bunnag, 2023. "Analyzing Short-run and Long-run Causality Relationship among CO2 Emission, Energy Consumption, GDP, Square of GDP, and Foreign Direct Investment in Environmental Kuznets Curve for Thailand," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 341-348, March.
    3. Chupryhin, Radzivon, 2021. "Determinants of Foreign Direct Investment in Europe: Bayesian Model Averaging in the Presence of Weak Exogeneity," MPRA Paper 107197, University Library of Munich, Germany.
    4. Tanattrin Bunnag, 2023. "Environmental Kuznets Curve Model for the United States: A Consideration of Foreign Direct Investment Variable," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 130-138, July.

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