Determinants of Direct foreign Investment as a Means of International Market Entry: A Review

Foreign Direct Investment (FDI) is currently used as an important tool in the International Market environment by global investors for entering into an economy. It is also one of the key factors that supports and accelerates economic growth of the host economy. With the growing interest on FDI worldwide in the recent years, the literature on FDI is also expanding in many folds. This review is an attempt to provide an insight into the empirical studies done in the past to analyse and explore the determinants playing a major role in attracting investors. The study infers that there are similarities, dissimilarities, significance, insignificance and ambiguity in explanatory variables that determine FDI inflows.