Both the drivers and effects of foreign direct investment (FDI) are complex and multifaceted. This thesis provides a conceptual overview of a selection of the most frequently considered drivers and economic effects of FDI in literature. The overview aims to support host countries in providing targeted incentives to attract FDI by raising the awareness of controllable drivers. Drivers for selecting a specific host country are presented hierarchically according to their controllability by the host country.
The governance infrastructure as a driver, for instance, is easier to control by the target country than market characteristics, cultural distance, or resource endowments. This thesis discusses the drivers according to their decreasing controllability, starting with political factors, followed by economic, social, and cultural, as well as geographical factors. The reasons why these factors may attract FDI are outlined in the respective subsections. Moreover, this overview presents the economic effects of FDI on the host country. These effects include increased competition or spillover effects from foreign to local companies.
The composition of direct and indirect effects leads to the conclusion that all these effects impact economic growth, which represents both a driver and an effect of FDI simultaneously. Thus, this thesis refers to the dependencies between drivers and effects with their interrelated factor economic growth. Further, it is argued that the effects of FDI are significantly interdependent among each other. Therefore, the realization of specific effects, such as economic growth, strongly depends on conditions and specific characteristics, such as the particular threshold level of human capital in the host country.
Inhaltsverzeichnis (Table of Contents)
- 1. Introduction
- 2. Theoretical Background
- 2.1 Foreign Direct Investment
- 2.1.1 Definition
- 2.1.2 Conceptual Foundation
- 2.2 The Eclectic Paradigm
- 2.3 Economic Effects
- 3. Method: Theoretical and Analytical Procedure
- 4. Results
- 4.1 Drivers of Foreign Direct Investment
- 4.1.1 Political Drivers
- 4.1.2 Economic Drivers
- 4.1.3 Social and Cultural Drivers
- 4.1.4 Geographical Drivers
- 4.2 Economic Effects of Foreign Direct Investment
- 4.2.1 Direct Effects
- 4.2.2 Indirect Effects
- 4.3 Dependencies Between Drivers and Effects
- 5. Conclusion and Research Directions
- 5.1 Theoretical Implications
- 5.2 Managerial Implications
- 5.3 Limitations and Future Research
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This thesis provides a conceptual overview of the determinants and economic effects of Foreign Direct Investment (FDI). The main objective is to support host countries in attracting FDI by highlighting controllable factors influencing investment decisions. The thesis analyzes these factors hierarchically based on their controllability by the host country, progressing from political factors to economic, social, cultural, and geographical aspects. It also examines the economic effects of FDI, including both direct and indirect impacts on economic growth.
- Controllability of FDI drivers by host countries
- Hierarchical analysis of FDI determinants (political, economic, social, cultural, geographical)
- Direct and indirect economic effects of FDI
- Interdependencies between FDI drivers and effects
- The role of FDI in economic growth
Zusammenfassung der Kapitel (Chapter Summaries)
1. Introduction: This introductory chapter sets the stage for the thesis by outlining the complexities surrounding the drivers and effects of foreign direct investment (FDI). It highlights the thesis's aim to provide a comprehensive overview of these factors to help host countries develop effective strategies for attracting FDI. The chapter establishes the framework for the subsequent analysis, emphasizing the hierarchical approach to examining FDI drivers based on their controllability by the host country.
2. Theoretical Background: This chapter lays the theoretical groundwork for the thesis by defining FDI and providing a conceptual foundation for understanding its drivers and effects. It introduces the eclectic paradigm, a key theoretical framework used to analyze FDI decisions, and provides a preliminary discussion of the economic effects of FDI, setting the stage for a more detailed examination in later chapters.
3. Method: Theoretical and Analytical Procedure: This chapter details the methodological approach employed in the thesis. It describes the theoretical and analytical procedures used to analyze the drivers and effects of FDI, providing a clear explanation of the research methodology and ensuring transparency in the research process. The chapter likely outlines the analytical framework used to organize and interpret the data.
4. Results: This chapter presents the core findings of the thesis, detailing the identified drivers and economic effects of FDI. It systematically explores political, economic, social, cultural, and geographical drivers, analyzing their impact on FDI decisions. Furthermore, it delves into both the direct and indirect economic effects of FDI on the host country, including impacts on competition and spillover effects. A key aspect is the analysis of the interdependencies between drivers and effects, emphasizing the intricate relationship between FDI and economic growth. The chapter likely presents this information using both qualitative and quantitative data analysis.
Schlüsselwörter (Keywords)
Foreign Direct Investment (FDI), economic growth, drivers of FDI, economic effects of FDI, political factors, economic factors, social factors, cultural factors, geographical factors, spillover effects, competition, controllability, eclectic paradigm, host country, interdependencies.
Frequently Asked Questions: A Comprehensive Language Preview
What is the purpose of this document?
This document provides a comprehensive preview of a thesis examining the determinants and economic effects of Foreign Direct Investment (FDI). It includes the table of contents, objectives and key themes, chapter summaries, and keywords. The goal is to offer a structured overview for academic analysis.
What are the main objectives of the thesis?
The primary objective is to help host countries attract FDI by identifying and analyzing controllable factors influencing investment decisions. The thesis analyzes these factors hierarchically (political, economic, social, cultural, and geographical) and examines the direct and indirect economic effects of FDI on economic growth.
What are the key themes explored in the thesis?
Key themes include the controllability of FDI drivers by host countries, a hierarchical analysis of FDI determinants, the direct and indirect economic effects of FDI, interdependencies between FDI drivers and effects, and the role of FDI in economic growth.
What theoretical framework is used?
The thesis utilizes the eclectic paradigm as a key theoretical framework for analyzing FDI decisions.
How are the FDI drivers analyzed?
The FDI drivers are analyzed hierarchically based on their controllability by the host country, starting with political factors and progressing to economic, social, cultural, and geographical aspects.
What types of economic effects of FDI are examined?
Both direct and indirect economic effects of FDI are examined, including impacts on competition and spillover effects.
What is the methodology employed in the thesis?
The document outlines a theoretical and analytical procedure for analyzing FDI drivers and effects. The specific methods used are described in the "Method: Theoretical and Analytical Procedure" chapter.
What are the key findings presented in the "Results" chapter?
The "Results" chapter presents findings on the identified drivers and economic effects of FDI. This includes a systematic exploration of political, economic, social, cultural, and geographical drivers and their impact on FDI decisions, as well as an analysis of the interdependencies between these drivers and the economic effects.
What are the key conclusions and implications of the thesis?
The conclusion likely discusses theoretical and managerial implications of the findings, addresses limitations of the research, and suggests directions for future research.
What are the keywords associated with this thesis?
Keywords include: Foreign Direct Investment (FDI), economic growth, drivers of FDI, economic effects of FDI, political factors, economic factors, social factors, cultural factors, geographical factors, spillover effects, competition, controllability, eclectic paradigm, host country, interdependencies.
What is the structure of the thesis?
The thesis follows a structured format including an introduction, a theoretical background section, a methodology chapter, a results chapter, and a conclusion with implications for future research.
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- Antonia Haberger (Autor:in), 2019, Foreign Direct Investment. A Review of the Determinants and Economic Effects, München, GRIN Verlag, https://www.grin.com/document/901015
