THE DETERMINANTS OF SECTORAL INWARD FDI PERFORMANCE INDEX IN OECD COUNTRIES

Year 2013, Volume: 5 Issue: 2, 35 - 44, 01.12.2013

Lena Malešević Perović Silvia Golem

Abstract

The main aim of this paper is to investigate sectoral aspect of foreign direct
investment (FDI) in Organization for Economic Cooperation and Development
(OECD) countries. In particular we first create Sectoral Inward FDI performance
index which allows us to draw conclusions about comparative advantages of a
particular country in a certain sector, and then analyse its main determinants in the
period 2005-2010 using panel analysis. The results indicate that the main FDI
determinants vary significantly across sectors, and this should be taken into
account by policy-makers.

Keywords

FDI, OECD, sectoral analysis, panel data

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