English

Determinants of Foreign Direct Investment and its Statistical Analysis

Foreign direct investment (FDI) is investment that serves the business interests of the capitalist in an enterprise, which is in a different economy distinct from the investor's country of origin. FDI plays an unusual and growing part in world market. It can provide new markets and marketing channels, cheaper production facilities, access to new technology, products, dexterity and financing for businesses. For a host country or the foreign business which receives the investment, it can provide a source of state-of-the art technology, capital, processes, products, organizational technologies and management skills, and as such can provide a strong drive to economic development. In recent years, given rapid development and change in global investment approach, the definition has been broadened to include the acquisition of a lasting management interest in a company outside the investing company's home country. It may take many forms, such as a direct acquisition of a foreign firm, construction of a facility, or investment in a joint venture or strategic alliance with a local business with attendant input of technology, licensing of intellectual property. It produces a positive result

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