Determinants of Foreign Direct Investment in Less Developed Countries: A Factor Analysis Approach

Cranmer Rutihinda

Article

Using factor analysis this study explores factors influencing the choice of foreign direct investment in less developed countries. Results show significant relationships between foreign direct investment and institutional quality, infrastructure development, market size, availability of natural resources, and quality of human capital. However, the study found no significant relationship between foreign direct investment inflows and economic stability.

Keywords

Round Building

Article