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2020 | OriginalPaper | Chapter

Improved Predictability for Foreign Direct Investors by Comprising Different Macroeconomic Levels: A New Model Approach

Author : Helmut Birnleitner

Published in: Eurasian Business Perspectives

Publisher: Springer International Publishing

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Abstract

Foreign direct investments have grown over the last decades which are related to the ongoing globalization process. The current literature shows research works dealing with the topic of influence factors on foreign direct investment (FDI) decisions which may occur during the decision-making process. A new causal model has been developed to get in-depth view on macroeconomic perspective. Motives to do FDI are strongly impacted by macroeconomic factors which may influence upcoming decisions. To be able to understand the impact of the macroeconomic environment on FDI decisions the factors have been diversified and conceptualized, divided into three subgroups of independent latent variables in the construct. Two additional intervening variables, fiscal incentive schemes and uncertain and volatile environmental circumstances have been included to the model to gain a holistic picture of macroeconomic influence factors. One hundred and thirty-eight representative persons from the German and Austrian automotive industry served a basement of data for analysis. Expected market development, production factors, and public and governmental factors define the framework requirement of potential impact factors on FDI motives.

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Metadata
Title
Improved Predictability for Foreign Direct Investors by Comprising Different Macroeconomic Levels: A New Model Approach
Author
Helmut Birnleitner
Copyright Year
2020
DOI
https://doi.org/10.1007/978-3-030-35051-2_4