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The Determinants of Foreign Direct Investment: An Analytical Survey

  • Chaitali Sinha
  • Kunal Sen
Chapter

Abstract

Investments undertaken by multinational corporations (MNCs) can be regional or global. In the recent years, there has been spectacular growth in the flow of global capital in developing economies accompanied by a significant increase in capital outflows from the Global South. Though outward investment by emerging economies is not a new phenomenon, the past couple of decades have witnessed a surge in the quantity and also qualitative transformation in the pattern of their investment. The most important region among developing countries for foreign direct investment outflows is Asia, though there has been an increase in other developing regions as well. In this chapter, we present an analytical survey of the literature around the various issues that determine the location decision of global capital and also investigate the current changes in trends in these investment flows. We also explain the motivating factors behind the location decisions of southern multinationals, an area relatively new in the literature on foreign direct investment.

Keywords

Foreign Direct Investment Real Exchange Rate Source Country Capital Inflow Pull Factor 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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© Springer India 2016

Authors and Affiliations

  1. 1.Institute for Development Policy and Management (IDPM), School of Environment, Education and DevelopmentUniversity of ManchesterManchesterUK

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