Modeling FDI Attraction-An Optimization Model
Journal of International Business Research and Practice, Vol. 3, p. 15, 2009
12 Pages Posted: 3 Sep 2011
Date Written: September 1, 2009
In this paper, we examine political, financial, and economic risk factors that influence the inflow of FDI into host countries. We develop an optimization model anchored in the eclectic theory of international production and show a numerical example of how our model can be employed for decision-making purposes. Our work is based on the location dimension of the eclectic theory and is premised on the notion that risks inherent in the institutional characteristics of a country’s environment determine the level of FDI inflows the country will receive.
Keywords: FDI, economic, financial, political risks, optimization
JEL Classification: C66
Suggested Citation: Suggested Citation