A multi-criteria decision-making model for evaluating priorities for foreign direct investment

Abstract

Abstract. The objective of this study is to evaluate the relative priority of nine developed countries as a home country for foreign direct investment (FDI) from the vantage point of the United States during three time periods: pre-crisis (2004-2006), crisis (2007-2009), and post-crisis (2010-2012). Our study suggests a methodology based on a combination of the analytic hierarchy process (AHP), the technique for order preference by similarity to ideal solution (TOPSIS), and the multi-period multi-attribute decision-making (MP-MADM) technique. To investigate our research question, we selected fifteen robust FDI determinants from recent studies. The results for all three time periods show that productivity, market potential, market size, GDP growth and development have the highest priority in the decision-making process. On the other hand, we found that the 2007 global financial crisis significantly affected each variable in the decision-making process. During the crisis, two variables in particular -corruption and GDP growth -significantly increased in importance. These findings have farreaching policy implications and can assist policymakers and investors in their strategic decision-making process.

Decision making framework for foreign direct investment: Analytic hierarchy process and weighted aggregated sum product assessment integrated approach

“…In the process of evaluating the banks' financial performance, Mandic et al (2014) used integrated AHP‐TOPSIS and conducted the analyses covering the period of 2005–2010, of the entire Serbian banking industry. In three phases (pre‐recession (2014–06), recession (2007–2009), and post‐recession (2010–2012), (Gokmenoglu & Alaghemand, 2015) assessed the relative priorities for FDIs as the home‐country of nine developing countries from the US' perspective using the integrated AHP‐TOPSIS. Using the integrated AHP‐TOPSIS methodology, Çalık et al (2019) analyzed the appropriate industry's selection by taking note of the economic factors (ECO), political factors (POL), and country factors (COU) for foreign investors.…”

The Impact of Corruption on Domestic and Foreign Investment in Indonesia

“…Gokmenogluand Alaghemand [18]consider the corruption risk as one of the fifteen variables determine the FDI. Javorcik and Wei [19]use multiple variables and mention that the empirical evidence shows that corruption reduces inward FDI and shifts the ownership structure towards joint ventures.…”

Effective selection of countries in sub-Saharan Africa for new market entry by independent wind power producers

“…In recent years, the realisation chances of IPPs have improved (Alova et al, 2021). IPPs, however, cannot enter every market because of the high costs, risks and low success rates associated with procurement programmes, forcing them to be selective (Beim and Lévesque, 2006;Gokmenoglu and Alaghemand, 2015;Wijnja, 2014). 'In general, it can be stated that regulatory reliability and support is the key to the long-term deployment of wind power' (WWEA, 2018).…”