The location choice of foreign direct investments: Empirical evidence and methodological challenges

The choice of location of foreign direct investments (FDI) by multinational enterprises (MNEs) has been the subject of intense scrutiny for decades and continues to be so. Yet, the vast diversity in methodological approaches, levels of analysis, and empirical evidence precludes a comprehensive under...

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Published inJournal of world business : JWB Vol. 52; no. 1; pp. 62 - 82
Main Authors Nielsen, Bo Bernhard, Asmussen, Christian Geisler, Weatherall, Cecilie Dohlmann
Format Journal Article
LanguageEnglish
Published Elsevier Inc 01.01.2017
Subjects
Online AccessGet full text
ISSN1090-9516
DOI10.1016/j.jwb.2016.10.006

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Abstract The choice of location of foreign direct investments (FDI) by multinational enterprises (MNEs) has been the subject of intense scrutiny for decades and continues to be so. Yet, the vast diversity in methodological approaches, levels of analysis, and empirical evidence precludes a comprehensive understanding of the phenomenon. We review and evaluate 153 quantitative studies on FDI location choice over four decades from 1976 to 2015 across multiple disciplines, including international business, management, economics, urban and regional studies, and economic geography. Our review provides a comprehensive analysis of the empirical evidence and methodological implications to guide future empirical research on FDI location choice.
AbstractList The choice of location of foreign direct investments (FDI) by multinational enterprises (MNEs) has been the subject of intense scrutiny for decades and continues to be so. Yet, the vast diversity in methodological approaches, levels of analysis, and empirical evidence precludes a comprehensive understanding of the phenomenon. We review and evaluate 153 quantitative studies on FDI location choice over four decades from 1976 to 2015 across multiple disciplines, including international business, management, economics, urban and regional studies, and economic geography. Our review provides a comprehensive analysis of the empirical evidence and methodological implications to guide future empirical research on FDI location choice.
Author Weatherall, Cecilie Dohlmann
Asmussen, Christian Geisler
Nielsen, Bo Bernhard
Author_xml – sequence: 1
  givenname: Bo Bernhard
  surname: Nielsen
  fullname: Nielsen, Bo Bernhard
  email: bo.nielsen@sydney.edu.au
  organization: Discipline of International Business, Sydney University, Australia
– sequence: 2
  givenname: Christian Geisler
  surname: Asmussen
  fullname: Asmussen, Christian Geisler
  organization: Department of Strategic Management and Globalization, Copenhagen Business School, Denmark
– sequence: 3
  givenname: Cecilie Dohlmann
  surname: Weatherall
  fullname: Weatherall, Cecilie Dohlmann
  organization: Kraks Fond, Institute for Urban Economic Research, Denmark
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Keywords Methodological challenges
Location choice
Global cities
Agglomeration
Foreign direct investments
Institutional theory
Empirical evidence
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Snippet The choice of location of foreign direct investments (FDI) by multinational enterprises (MNEs) has been the subject of intense scrutiny for decades and...
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SubjectTerms Agglomeration
Empirical evidence
Foreign direct investments
Global cities
Institutional theory
Location choice
Methodological challenges
Title The location choice of foreign direct investments: Empirical evidence and methodological challenges
URI https://dx.doi.org/10.1016/j.jwb.2016.10.006
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