Systematic Literature Review of Determinants of FDI

Abstract

Review of the literature on determinants of foreign direct investment (FDI) is important in identifying and characterising why MNCs’ would like to choose FDI as their main method of penetrating new market. This paper aims to offer systematical review of all possible determinants of FDI, trying to help developing countries to better understand how to attract more inward FDI, and how to facilitate domestic companies to make investment in other countries.