Multiple Linear Regression Study on Foreign Direct Investment Influenced Factors
1. Introduction
Foreign Direct Investment (FDI) is defined as an investment involving a long-term relationship and reflecting a lasting interest and control by a resident entity in one economy in an economy rather than that of the foreign direct investor (UNCTAD, 2007). While Foreign direct investment are the net inflows of investment to acquire a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor (World Bank, 2015). In short, FDI refers to the investment of foreign investors beside their home country.
Most of developing countries in the world are looking for relationship to increase the foreign direct investment in their home country since FDI is the booster for the economics growth. FDI triggers technology spillovers, assist human capital information, contributes to international trade integration, helps to create a more competitive business environment and enhances enterprise development (OECD,
A potential advantage of FDI is supporting the economics growth as the example of China which
has potential in nature resources, labor and even the existing market. Based on firm data in China from 2000 to 2007, the foreign direct investment firms were in a good financial condition and tend to promote on export, output, employment and the labor wage (Wang, 2015). It is reflected by the common advantages of FDI on spillover effect of human capital from foreign countries toward China’s human capital as well as the contribution on the effort to promote the international trade and integration the China to the world. A single bottom line of developing countries to attract FDI is the poverty reduction.
Since FDI will directly involve on the unemployment rate reduction for the countries.
Multiple Linear Regression Study on Foreign Direct Investment Influenced Factors1. IntroductionForeign Direct Investment (FDI) is defined as an investment involving a long-term relationship and reflecting a lasting interest and control by a resident entity in one economy in an economy rather than that of the foreign direct investor (UNCTAD, 2007). While Foreign direct investment are the net inflows of investment to acquire a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor (World Bank, 2015). In short, FDI refers to the investment of foreign investors beside their home country. Most of developing countries in the world are looking for relationship to increase the foreign direct investment in their home country since FDI is the booster for the economics growth. FDI triggers technology spillovers, assist human capital information, contributes to international trade integration, helps to create a more competitive business environment and enhances enterprise development (OECD, A potential advantage of FDI is supporting the economics growth as the example of China which has potential in nature resources, labor and even the existing market. Based on firm data in China from 2000 to 2007, the foreign direct investment firms were in a good financial condition and tend to promote on export, output, employment and the labor wage (Wang, 2015). It is reflected by the common advantages of FDI on spillover effect of human capital from foreign countries toward China’s human capital as well as the contribution on the effort to promote the international trade and integration the China to the world. A single bottom line of developing countries to attract FDI is the poverty reduction.
Since FDI will directly involve on the unemployment rate reduction for the countries.
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