An Investigation into the Causal Links Among FDI Determinants: Empirical Evidence from Greece

Abstract

The attraction of inward FDI in Greece is a critical condition for Greece’s economic recovery due to the prolonged economic crisis and sustained investment hardship. Consequently, this study aims to provide essential implications by examining factors that can influence foreign direct investment decisions. The findings provide new insights regarding the diachronically high importance of technological capabilities compared to other FDI determinants such as the market size, trade openness, quality of the indigenous workforce, and local infrastructure, as the main determinants of inward FDI in Greece over the period 1980–2016.

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