The Determinants of Foreign Direct Investment in Europe and Asia: A Comparison Study
ABSTRACT This research study makes use of the institutional FDI fitness framework to study and compare the main determinants of foreign direct investment in Europe and Asia. The main categories of FDI fitness explored included market fitness, government fitness and educational fitness. Within these...
| Main Author: | |
|---|---|
| Format: | Dissertation (University of Nottingham only) |
| Language: | English English |
| Published: |
2013
|
| Online Access: | https://eprints.nottingham.ac.uk/26430/ |
| Summary: | ABSTRACT
This research study makes use of the institutional FDI fitness framework to study and compare the main determinants of foreign direct investment in Europe and Asia. The main categories of FDI fitness explored included market fitness, government fitness and educational fitness. Within these, variables such as GDP, annual GDP growth, inflation, domestic credit, school enrolment, political stability and corruption perception were evaluated.
Using panel data techniques to test the model, results revealed that on a broad sense of view market and government fitness categories had the strongest influences on FDI compared to educational fitness, which exhibited a negligible impact. More specifically, it was observed that market growth, corruption perception, inflation and domestic credit availability are most influential factors in Europe; while in Asia, market growth and inflation are most prominent. Overall, economic openness, market growth, inflation and domestic credit availability had the greatest impacts and these findings corroborated those of previous studies especially Wilhelms (1998), who developed the institutional fitness model. |
|---|