This paper studies the impact of human capital on the relationship between inward foreign direct investment and economic growth in ASEAN and Latin America during 1975-1995. We test two hypotheses. First, we hypothesise that there is a two-way relationship between economic growth and FDI. Second,...

This paper examines whether foreign aid contributes to attracting foreign direct investment (FDI) in aid receiving countries. Using both homogeneous and heterogeneous panel cointegration techniques, I find that the effect of foreign aid on FDI is negative. This is in contrast to previous studies...

We examine multinationals optimal entry modes into foreign markets as a function of market size, FDI fixed costs, tariffs and transport costs. Our results highlight why large countries are more likely to attract acquisition investment, while intermediate-sized countries may be served...