The Role of Foreign Direct Investment in the Firm Selection Process in a Host Country: Evidence from Slovenia

Improvements in communication, transportation, and technology continue to drive business globalization. Foreign Direct Investment (FDI) is one way in which firms can globalize. Although firms seeking FDI opportunities may investigate the commercial, economic, political, and natural resource environment of the potential host country, cultural issues including crisis management attitudes are sometimes overlooked. This study reviews crisis management considerations, investigates attitudes of indifference displayed by Guatemalan businesses with respect to crisis management, and discusses the implications for firms seeking FDI opportunities in Guatemala.

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Foreign direct investment risk implication on employment in an emerging economy

Risk Governance and Control Financial Markets & Institutions ◽

10.22495/rgc7i4c1art6 ◽

2017 ◽

Vol 7 (4-1) ◽

pp. 148-152

Author(s):

Collins C Ngwakwe

Keyword(s):

South Africa ◽

Foreign Direct Investment ◽

Host Country ◽

Direct Investment ◽

Time Series Data ◽

Negative Relationship ◽

Least Square ◽

Series Data ◽

Unexpected Result

This paper analysed the employment risk-effect of foreign direct investment (FDI) inflow in South Africa for the periods 1991 to 2014. The paper is an attempt to contribute to the growing debate on the role of FDI in economic development, but specifically on employment. The paper applied a quantitative method and used time series data from the World Bank development indicators. The ordinary least square (OLS) regression statistics was used to analyse the relationship between FDI and employment in South Africa for 1991 – 2014. Consistent with some previous research findings, results showed that during the period of study, FDI showed a negative relationship with employment – a growth in FDI had a negative effect on local employment by 1.29 percent. The paper thus highlights that if FDI does not received proper strategy, the host country may run the risk of not benefitting economically from FDI. This unexpected result can be attributed to some causes, which include inter alia reduction in domestic productivity because of FDI, the nature of FDI and the host country regulation of FDI. The paper suggests further research on the role of FDI on domestic productivity in South Africa

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Traditional And Non-Traditional Determinants Of Foreign Direct Investment In Developing Countries

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v20i1.2194 ◽

2011 ◽

Vol 20 (1) ◽

Cited By ~ 4

Author(s):

Simran K. Kahai

Keyword(s):

Developing Countries ◽

Foreign Direct Investment ◽

International Trade ◽

Host Country ◽

Empirical Model ◽

Direct Investment ◽

Economic Freedom ◽

Institutional Factors ◽

Qualitative Factors

This paper extends previous studies on the determinants of Foreign Direct Investment (FDI) by looking at both traditional and non-traditional factors that influence the amount of FDI flowing to developing countries. Emphasis is placed on the role of non-traditional qualitative factors. Data from 1998 and 2000 for fifty-five developing countries are employed to estimate an empirical model of FDI. Results indicate that FDI is significantly affected by several qualitative factors such as the level of economic freedom, level of corruption, and the level of international trade regulations adopted in the host country. These findings support the need for increased considera- tion of cultural and institutional factors in attempting to better estimate and understand the devel- opment process.

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