Some New Evidence on Determinants of Foreign Direct Investment in Developing Countries

ArXiv ID: ssrn-623885 “View on arXiv”

Authors: Unknown

Abstract

An export orientation is the strongest variable explaining why a country attracts foreign direct investment.

Singh and Jun expand on earlier studies of the d

Keywords: Foreign Direct Investment (FDI), Export Orientation, Emerging Markets, Macroeconomics, Macroeconomic

Complexity vs Empirical Score

• Math Complexity: 2.0/10
• Empirical Rigor: 3.0/10
• Quadrant: Philosophers
• Why: The paper relies on standard regression analysis and Granger causality tests with macroeconomic data, lacking advanced mathematics or dense theoretical derivations. While it uses real-world data, the methodology is descriptive and policy-oriented rather than implementation-heavy or backtest-ready for trading.

  flowchart TD
    A["Research Goal:<br>Determinants of FDI<br>in Developing Countries"] --> B["Data Collection:<br>Panel Data: 31 Developing Countries<br>1970-1990"]
    B --> C["Methodology:<br>Fixed Effects Panel Regression"]
    C --> D["Computational Process:<br>Estimate Impact of Macro Variables<br>Export Orientation vs. Market Size"]
    D --> E{"Key Findings"}
    E --> F["Export Orientation<br>Strongest FDI Driver"]
    E --> G["Market Size<br>Significant but Secondary"]
    E --> H["Inflation/Government<br>Mixed/Insignificant Impact"]