Working Paper: NBER ID: w11299
Authors: Bruce A. Blonigen
Abstract: This paper surveys the recent burgeoning literature that empirically examines the foreign direct investment (FDI) decisions of multinational enterprises (MNEs) and the resulting aggregate location of FDI across the world. The contribution of the paper is to evaluate what we can say with relative confidence about FDI as a profession, given the evidence, and what we cannot have much confidence in at this point. Suggestions are made for future research directions.
Keywords: Foreign Direct Investment; Multinational Enterprises; FDI Determinants
JEL Codes: F21; F23
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| exchange rate depreciation (F31) | inward FDI (F21) |
| higher taxes (H29) | inward FDI (F21) |
| poor legal protections and high corruption levels (P37) | inward FDI (F21) |
| higher trade barriers (F14) | inward FDI (F21) |