The Location Choice of Foreign Direct Investments: Empirical Evidence and Methodological Challenges

Bo Bernhard Nielsen; Christian Geisler Asmussen; Cecilie Dohlmann  Weatherall

doi:10.1016/j.jwb.2016.10.006

The Location Choice of Foreign Direct Investments: Empirical Evidence and Methodological Challenges

Bo Bernhard Nielsen, Christian Geisler Asmussen, Cecilie Dohlmann Weatherall

Kraks Fond Byforskning

Research output: Contribution to journal › Review article › peer-review

Abstract

The choice of location of foreign direct investments (FDI) by multinational enterprises (MNEs) has been the subject of intense scrutiny for decades and continues to be so. Yet, the vast diversity in methodological approaches, levels of analysis, and empirical evidence precludes a comprehensive understanding of the phenomenon. We review and evaluate 153 quantitative studies on FDI location choice over four decades from 1976 to 2015 across multiple disciplines, including international business, management, economics, urban and regional studies, and economic geography. Our review provides a comprehensive analysis of the empirical evidence and methodological implications to guide future empirical research on FDI location choice.

Original language	English
Journal	Journal of World Business
Volume	52
Issue number	1
Pages (from-to)	62-82
Number of pages	21
ISSN	1090-9516
DOIs	https://doi.org/10.1016/j.jwb.2016.10.006
Publication status	Published - 2017

Keywords

Location choice
Foreign direct investments
Global cities
Agglomeration
Institutional theory
Empirical evidence
Methodological challenges

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Cite this

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title = "The Location Choice of Foreign Direct Investments: Empirical Evidence and Methodological Challenges",

abstract = "The choice of location of foreign direct investments (FDI) by multinational enterprises (MNEs) has been the subject of intense scrutiny for decades and continues to be so. Yet, the vast diversity in methodological approaches, levels of analysis, and empirical evidence precludes a comprehensive understanding of the phenomenon. We review and evaluate 153 quantitative studies on FDI location choice over four decades from 1976 to 2015 across multiple disciplines, including international business, management, economics, urban and regional studies, and economic geography. Our review provides a comprehensive analysis of the empirical evidence and methodological implications to guide future empirical research on FDI location choice.",

keywords = "Location choice, Foreign direct investments, Global cities, Agglomeration, Institutional theory, Empirical evidence, Methodological challenges, Location choice, Foreign direct investments, Global cities, Agglomeration, Institutional theory, Empirical evidence, Methodological challenges",

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AU - Nielsen, Bo Bernhard

AU - Geisler Asmussen, Christian

AU - Weatherall, Cecilie Dohlmann

PY - 2017

Y1 - 2017

N2 - The choice of location of foreign direct investments (FDI) by multinational enterprises (MNEs) has been the subject of intense scrutiny for decades and continues to be so. Yet, the vast diversity in methodological approaches, levels of analysis, and empirical evidence precludes a comprehensive understanding of the phenomenon. We review and evaluate 153 quantitative studies on FDI location choice over four decades from 1976 to 2015 across multiple disciplines, including international business, management, economics, urban and regional studies, and economic geography. Our review provides a comprehensive analysis of the empirical evidence and methodological implications to guide future empirical research on FDI location choice.

AB - The choice of location of foreign direct investments (FDI) by multinational enterprises (MNEs) has been the subject of intense scrutiny for decades and continues to be so. Yet, the vast diversity in methodological approaches, levels of analysis, and empirical evidence precludes a comprehensive understanding of the phenomenon. We review and evaluate 153 quantitative studies on FDI location choice over four decades from 1976 to 2015 across multiple disciplines, including international business, management, economics, urban and regional studies, and economic geography. Our review provides a comprehensive analysis of the empirical evidence and methodological implications to guide future empirical research on FDI location choice.

KW - Location choice

KW - Foreign direct investments

KW - Global cities

KW - Agglomeration

KW - Institutional theory

KW - Empirical evidence

KW - Methodological challenges

KW - Location choice

KW - Foreign direct investments

KW - Global cities

KW - Agglomeration

KW - Institutional theory

KW - Empirical evidence

KW - Methodological challenges

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DO - 10.1016/j.jwb.2016.10.006

M3 - Review article

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JF - Journal of World Business

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