Market Size as a Determinant of the Foreign Direct Investment Inflows in the Western Balkans Countries

Abstract

Abstract. Numerous empirical studies confirm that market size is one of the key determinants of foreign direct investment inflows, particularly market-oriented projects of foreign direct investment. Basically, the dominant view is that a larger market of the host country attracts a greater quantum of foreign direct investment. This paper examines the influence of market size, as well as the impact of market growth, trade openness, and population size on the foreign direct investment inflows into the six countries of the Western Balkans region in the period [2007][2008][2009][2010][2011][2012][2013][2014][2015]

Determinants of Foreign Direct Investment: A Comparative Study between Central and East Africa

“…Results indicate that a percentage change in market size increases inflows of FDI by 2.32%. These results agree with the existing literature (see, for example, Jaiblai & Shenai, 2019;Faroh & Shen, 2015;Mottaleb & Kalirajan, 2010;Petrović-Ranđelović et al, 2017) in the case of Sub-Saharan African region, Sierra Leone, in and low-income countries and Balkan countries). Thus, infrastructure quality, market size, and trade openness determines FDI attraction in the two regions.…”

“…Besides, GDP per capita measures the purchasing power of an economy in an internationally comparable way. Previous studies have found the variable to be positively related to the attraction of FDI inflows (see Petrović-Ranđelović et al, 2017).…”

“…The research proposed that the level of endowment in natural resources and market size are pivotal channels that can support FDI to improve the quality of infrastructure. Likewize, Petrović-Ranđelović et al (2017) analyzed the role of market size in the attraction of FDI in Balkan countries over the year 2007-2015. They used a multi-regression model and found that market size has a significant positive effect on the FDI inflows in these economies.…”

“…,Petrović-Ranđelović et al (2017), andJaiblai &Shenai (2019), FDI is a function of technological transfer, trade openness, friendly environment of doing business, and GDP per-capita. In this study, we hypothesize that FDI is a function of infrastructure quality, trade openness, market size, and endowment in natural resources.…”

Study on Location Choice for NAFFCO Company in Jiangsu Province China

“…After we run (ADM) method and Saaty procedure we got The experts saw that MS is the most important that they preferred it strongly more than the rest of our variables and this is consistent with many studies as (Petrović-Ranđelović et al, 2017) . (Belderbos et al, 2002;Blomström & Lipsey, 1991;Sun et al, 2002) that what we mentioned in market size section above.…”