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Improved Predictability for Foreign Direct Investors by Comprising Different Macroeconomic Levels: A New Model Approach

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Eurasian Business Perspectives

Part of the book series: Eurasian Studies in Business and Economics ((EBES,volume 12/2))

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Abstract

Foreign direct investments have grown over the last decades which are related to the ongoing globalization process. The current literature shows research works dealing with the topic of influence factors on foreign direct investment (FDI) decisions which may occur during the decision-making process. A new causal model has been developed to get in-depth view on macroeconomic perspective. Motives to do FDI are strongly impacted by macroeconomic factors which may influence upcoming decisions. To be able to understand the impact of the macroeconomic environment on FDI decisions the factors have been diversified and conceptualized, divided into three subgroups of independent latent variables in the construct. Two additional intervening variables, fiscal incentive schemes and uncertain and volatile environmental circumstances have been included to the model to gain a holistic picture of macroeconomic influence factors. One hundred and thirty-eight representative persons from the German and Austrian automotive industry served a basement of data for analysis. Expected market development, production factors, and public and governmental factors define the framework requirement of potential impact factors on FDI motives.

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Author information

Authors and Affiliations

  1. Faculty of Business, Management and Economics, University of Latvia, Riga, Latvia

    Helmut Birnleitner

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  1. Helmut Birnleitner
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Editor information

Editors and Affiliations

  1. Faculty of Political Sciences, Istanbul Medeniyet University, Istanbul, Turkey

    Mehmet Huseyin Bilgin

  2. MUFG Union Bank, San Francisco, CA, USA

    Hakan Danis

  3. Faculty of Tourism, Istanbul Medeniyet University, Istanbul, Turkey

    Ender Demir

  4. Faculty of Economics, Kadir Has University, Fatih, Istanbul, Turkey

    Meltem Åž. Ucal

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Birnleitner, H. (2020). Improved Predictability for Foreign Direct Investors by Comprising Different Macroeconomic Levels: A New Model Approach. In: Bilgin, M., Danis, H., Demir, E., Ucal, M. (eds) Eurasian Business Perspectives. Eurasian Studies in Business and Economics, vol 12/2. Springer, Cham. https://doi.org/10.1007/978-3-030-35051-2_4

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