lynx   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/aif/journl/v4y2020i5p73-73.html
   My bibliography  Save this article

Determinants of Foreign Direct Investment: A Panel Data Analysis of the 24 Emerging Countries

Author

Listed:
  • Nusrat Jahan

    (Department of Marketing, University of Barishal, Barishal-8200, Bangladesh)

Abstract
The world economy has witnessed a boost of Foreign Direct Investment (FDI) inflows across different countries which are the most visible sign of globalization. FDI has grown at an exceptional rate since 1980s. It is evident from the past decade that the trend of FDI has shifted from developed countries to emerging economies. Investors are shifting to the emerging countries as they offer more potential growth and investment returns. Since these countries have emerged as an attractive destination of FDI, it is necessary to investigate the key determining factors that make these countries lucrative as FDI destinations. Hence, this study explores the factors determining FDI inflows into the emerging countries during the time frame from 1992 to 2016. This study identifies a set of potential explanatory variables which include market size, trade openness, availability of natural resources, economic instability, infrastructure facilities, labor force, and financial development level. A fixed effect model is employed on the panel data set that incorporates data from 24 emerging countries. Here, secondary data is used to analyze the variables which are collected from the World Bank dataset. The empirical findings of this study demonstrate that market size, trade openness, availability of natural resources, economic instability, infrastructure facilities, and financial development level are potential determinants of FDI inflows to the emerging countries, whereas, labor force appears to be an insignificant determinant of inward FDI to the emerging countries.

Suggested Citation

  • Nusrat Jahan, 2020. "Determinants of Foreign Direct Investment: A Panel Data Analysis of the 24 Emerging Countries," International Journal of Science and Business, IJSAB International, vol. 4(5), pages 57-73.
    • Handle: RePEc:aif:journl:v:4:y:2020:i:5:p:73-73
    as

    Download full text from publisher

    File URL: https://ijsab.com/wp-content/uploads/530.pdf
    Download Restriction: no
    File URL: https://ijsab.com/volume-4-issue-5/2961
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Prema-chandra Athukorala, 2009. "Trends and Patterns of Foreign Direct Investments In Asia: A Comparative Perspective," Departmental Working Papers 2009-08, The Australian National University, Arndt-Corden Department of Economics.
    2. Elizabeth Asiedu, 2006. "Foreign Direct Investment in Africa: The Role of Natural Resources, Market Size, Government Policy, Institutions and Political Instability," The World Economy, Wiley Blackwell, vol. 29(1), pages 63-77, January.
    3. Nunnenkamp, Peter, 2002. "Determinants of FDI in developing countries: has globalization changed the rules of the game?," Kiel Working Papers 1122, Kiel Institute for the World Economy (IfW Kiel).
    4. Kinda, Tidiane, 2010. "Investment Climate and FDI in Developing Countries: Firm-Level Evidence," World Development, Elsevier, vol. 38(4), pages 498-513, April.
    5. Recep Kok & Bernur Acikgoz Ersoy, 2009. "Analyses of FDI determinants in developing countries," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 36(1/2), pages 105-123, January.
    6. 0smail Çevi & Burak Çamurdan, 2007. "The Economic Determinants of Foreign Direct Investment in Developing Countries and Transition Economies," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 46(3), pages 285-299.
    7. Cheng Hsiao, 2007. "Rejoinder on: Panel data analysis—advantages and challenges," TEST: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 16(1), pages 56-57, May.
    8. Cheng Hsiao, 2007. "Panel data analysis—advantages and challenges," TEST: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 16(1), pages 1-22, May.
    9. Erdal Demirhan & Mahmut Masca, 2008. "Determinants of foreign direct investment flows to developing countries: a cross-sectional analysis," Prague Economic Papers, Prague University of Economics and Business, vol. 2008(4), pages 356-369.
    10. Lucas, Robert E. B., 1993. "On the determinants of direct foreign investment: Evidence from East and Southeast Asia," World Development, Elsevier, vol. 21(3), pages 391-406, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Khondoker Abdul Mottaleb & Kaliappa Kalirajan, 2010. "Determinants of Foreign Direct Investment in Developing Countries: A Comparative Analysis," ASARC Working Papers 2010-13, The Australian National University, Australia South Asia Research Centre.
    2. Benfratello, Luigi & D’Ambrosio, Anna & Sangrigoli, Alida, 2023. "Foreign Direct Investments in Africa: Are Chinese investors different?," Journal of Business Research, Elsevier, vol. 155(PA).
    3. Mohammad Shaiful Islam & Ahmed Beloucif, 2024. "Determinants of Foreign Direct Investment: A Systematic Review of the Empirical Studies," Foreign Trade Review, , vol. 59(2), pages 309-337, May.
    4. Victor, Kidake, 2018. "Infrastructure and Foreign Direct Investment in Kenya: A Time Series Analysis 1980-2015," MPRA Paper 98014, University Library of Munich, Germany.
    5. Sarker, Bibhuti & Serieux, John, 2023. "Multilevel determinants of FDI: A regional comparative analysis," Economic Systems, Elsevier, vol. 47(3).
    6. Jerzy Rozanski & Pawel Sekula, 2016. "Determinants of Foreign Direct Investment in Developed and Emerging Markets," Dynamic Econometric Models, Uniwersytet Mikolaja Kopernika, vol. 16, pages 49-64.
    7. Khondoker Abdul Mottaleb & Kaliappa Kalirajan, 2010. "Determinants of Foreign Direct Investment in Developing Countries," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 4(4), pages 369-404, November.
    8. Minakshee Das, 2020. "Determinants of inward foreign direct investment: Comparison across different country groups," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 38(1), pages 237-269.
    9. Ibhagui, Oyakhilome, 2017. "How Does Foreign Direct Investment Affect Growth in Sub-Saharan Africa? New Evidence from Non-threshold and Threshold Analysis," MPRA Paper 85784, University Library of Munich, Germany.
    10. Muhammad Akhtaruzzaman & Shaohua Yang & Azizah Omar, 2018. "Are Resource-Rich Countries More Attractive than Countries with Good Institutions to Foreign Direct Investors in Sub-Saharan Africa?," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 10(6), pages 65-74, June.
    11. Hany Eldemerdash & Hugh Metcalf & Sara Maioli, 2014. "Twin deficits: new evidence from a developing (oil vs. non-oil) countries’ perspective," Empirical Economics, Springer, vol. 47(3), pages 825-851, November.
    12. Ding Luo & Oded Cats & Hans Lint, 2020. "Can passenger flow distribution be estimated solely based on network properties in public transport systems?," Transportation, Springer, vol. 47(6), pages 2757-2776, December.
    13. Shah, Mumtaz Hussain & Azam, Ayesha, 2018. "Financial Development and Investors Location Choice in The Arab World," MPRA Paper 107245, University Library of Munich, Germany.
    14. Simplice Asongu & Enowbi Batuo & Vanessa Tchamyou, 2015. "Bundling Governance: Finance versus Institutions in Private Investment Promotion," Working Papers of the African Governance and Development Institute. 15/051, African Governance and Development Institute..
    15. Li, Larry & McMurray, Adela & Sy, Malick & Xue, Jinjun, 2018. "Corporate ownership, efficiency and performance under state capitalism: Evidence from China," Journal of Policy Modeling, Elsevier, vol. 40(4), pages 747-766.
    16. Almudena Moreno-Mínguez & Marta Ortega-Gaspar & Carlos Gamero-Burón, 2018. "A Socio-Structural Perspective on Family Model Preferences, Gender Roles and Work–Family Attitudes in Spain," Social Sciences, MDPI, vol. 8(1), pages 1-23, December.
    17. Dzintra Atstāja & Edmira Cakrani, 2024. "Impact of Climate Change on International Tourism Evidence from Baltic Sea Countries," Sustainability, MDPI, vol. 16(12), pages 1-16, June.
    18. Susanne Fricke & Lodovico Muratori, 2017. "Spatial price transmission and trade policies: new evidence for agricultural products from selected sub-Saharan African countries with high frequency data," Working Papers 5/17, Sapienza University of Rome, DISS.
    19. Lynn, Peter & Bosch, Oriol, 2021. "Methodological lessons from the pilot longitudinal survey on debt advice," ISER Working Paper Series 2021-03, Institute for Social and Economic Research.
    20. Chen, Hong & Gangopadhyay, Partha & Singh, Baljeet & Chen, Kairan, 2023. "What motivates Chinese multinational firms to invest in Asia? Poor institutions versus rich infrastructures of a host country," Technological Forecasting and Social Change, Elsevier, vol. 189(C).

    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:aif:journl:v:4:y:2020:i:5:p:73-73. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Farjana Rahman (email available below). General contact details of provider: .

    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.
    Лучший частный хостинг