Title: The Universal Model of theories determining FDI revisited

Authors: Aristidis P. Bitzenis; Pyrros D. Papadimitriou

Addresses: Department of International and European Studies, University of Macedonia, 156 Egnatia Str., GR 54006, Thessaloniki, Greece. ' Department of Political Science and International Relations, University of Peloponnese, Dervenakion 47 & Adimandou 22100, Corinth, Greece

Abstract: The paper refers to |a theoretical model| created by Bitzenis (2003), named Universal Model, that incorporates most of the Foreign Direct Investment (FDI) theories. What derives from the literature review is the comprehension of the relativity of each theory; there is no FDI theory that dominates the decision-making process of multinationals (MNEs) regarding FDI. Economists, MNEs and entrepreneurs may have a decisive interest in countries that open their economies aimed at attracting significant FDI inflows as a final goal. The investment opportunities appeared in various countries differ from time to time even in the same country diachronically.

Keywords: FDI theories; foreign direct investment; Aristidis Bitzenis; multinational enterprises; MNEs; transition economies; planned economies; Bulgaria; theoretical models; Universal Model; decision-making processes; economists; entrepreneurs; FDI inflows; investment opportunities; OLI; ownership location internalisation; government incentives; FDI determinants; globalisation; trade barriers; global markets.

DOI: 10.1504/IJTGM.2011.042861

International Journal of Trade and Global Markets, 2011 Vol.4 No.4, pp.350 - 371

Published online: 08 Apr 2015 *

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