The Theory of Foreign Direct Investment

Abstract

The concept of foreign direct investment (FDI) is a rather ambiguous one. To begin with, is the foreign investor the individual who se postponement of consumption enables the investment to be financed, or is the investor the firm whose shares are owned by the individual concerned and which in turn owns the real assets? If the investor is the firm then by what rules of nationality is it established that the firm is a foreign one—in particular, is there a meaningful economic criterion for the nationality of a multinational enterprise (MNE)? These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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