INTERNATIONAL COMPETITIVENESS VERSUS LOCATION ATTRACTIVENESS FOR FDI. A THEORETICAL APPROACH

Abstract

The aim of this paper is to assess the similarities and the differences in the theoretical frameworks that deal with international competitiveness and location attractiveness for FDI. We provide some insights in the evolution of definitions regarding the international competitiveness and emphasize its newest characteristics stated by scholars that resemble with the ones proposed for increasing the attractiveness of a location for FDI. We then assess whether the particularities and impact of FDI inflows in the host country could overlap the performance required for that a country to be considered internationally competitive. We investigate both the literature and the empirical evidence as regards the impact of FDI on host countries and we debate the role FDI could play in increasing the international competitiveness of economies. Finally, we provide some public policies measures that could be taken in order to enhance a country’s attractiveness for FDI and increase its international competitiveness.

Keywords

• foreign direct investment
• international competitiveness
• public policies