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The New Palgrave Dictionary of Economics pp 4854–4859Cite as

Palgrave Macmillan

Foreign Direct Investment

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Abstract

Foreign direct investment (FDI) occurs when an individual or firm acquires controlling interest in productive assets of another country. We review the literature on FDI, which can be divided into two broad categories. The first is the inquiry into why multinational production occurs and the factors that determine the patterns of worldwide FDI. The second is the impact that FDI and multinational enterprises (MNEs) have on the parent and host countries, including economic growth, returns to factors of production, and externalities.

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Authors and Affiliations

  1. http://link.springer.com/referencework/10.1007/978-1-349-95189-5

    Bruce A. Blonigen

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  1. Bruce A. Blonigen
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Blonigen, B.A. (2018). Foreign Direct Investment. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_1936

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