USV Annals of Economics and Public Administration (Jun 2016)
CHANGES IN THE FOREIGN DIRECT INVESTMENTS’ INFLOWS INTO THE DEVELOPING COUNTRIES DURING THE LAST DECADES
Abstract
During the last decades, the share of the foreign direct investments (FDI) attracted by the developing countries has considerable increased into the global FDI inflows. This increase has also been accompanied by significant changes in their sectorial composition and, implicitly, in their determinants. Considering these aspects, the main objective of the present paper is to analyse the evolution of the FDI inflows into the developing countries from the point of view of their destinations, structure and major determinants. The relevance of the paper results from the fact that, knowing these aspects, the developing countries may focus more on improving or augmenting the advantages sought by the multinational companies. In order to reach the established objective, we have conducted an analysis of the secondary data offered by the specialized literature. These secondary sources included various statistical yearbooks and reports, as well as different empirical investigations. The present paper starts from the hypothesis that, unlike 45 years ago, when the multinationals were looking especially for low production costs and resources’ availability when investing into the developing countries, at the beginning of the XXI century, the human capital, together with the socio-economic, financial and political stability and the presence of the efficient institutions play a more important role in attracting the FDI into these states.
