CHAPTER 3

Determinants of Foreign Direct Investment

There has been a large number of variables used as determinants of FDI by researchers across the globe. The study here attempts to identify the most significant determinants of FDI or else suggested other determinants because they make sense intuitively. Enabling institutional environment plays a very crucial role in attracting FDI. It reflects various dimensions of the political climate including national governmental policies, regulations, and so on; economic environments such as the structure of the domestic factor markets, market size, and so on, and socio-cultural environments such as informal norms, values, and beliefs. Several of the variables identified as determinants of FDI by researchers ...

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