Drivers of FDI in small states

• Type: Article in International Scientific Journal
• Date: 2023-04-03

Authors

Rosa Maria Forte (Author) FEP; C. Moura (Author) FCUP

Journal

Title: Journal of the Asia Pacific Economy

Vol. 28 No. 2

Pages: 457-483

ISSN: 1354-7860

Publisher: Taylor & Francis

Indexing

ISI Web of Knowledge - 1 Citation

Scopus - 1 Citation

Other information

Authenticus ID: P-00V-KNP

DOI: 10.1080/13547860.2021.1963042

Abstract (EN): This paper examines the determinants of FDI in small states, as only a small number of studies have analyzed the determinants of FDI in these countries. Small states have particular features that justify the need for a deeper analysis. Based on a panel data for 42 small states between 2005 and 2019, results clearly indicate the importance of the quality of human capital and the availability of infrastructures as the strongest drivers of FDI in small states. The country's level of openness, the availability of natural resources, the level of corporate tax and control of corruption also seems to play a relevant role therein. Moreover, the results suggest that the determinants differ depending on the region to which the country belongs and differ between island and non-island countries. These results can help small countries in defining policies that help them to attract FDI, which is crucial for their sustainable development.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 27