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Open research questions in International Business and FDI

159 unresolved questions extracted from the limitations and future-work sections of 4,563 International Business and FDI papers in our library. Each links back to the study that raised it.

What the literature leaves open

  • Carril-Caccia F., Pavlova E. (2018),, “American Economic Review”, vol. 91(3), pp. 693–708, https://doi Foreign direct investment and its drivers: a global and EU, https://www.ecb.europa.eu/press/economic-bulletin/articles/2018/html/ecb.ebart2 Policy uncertainty and foreign direct investment 01804_01.en.html [accessed: 3.06.2025]. Choi S., Furceri D., Yoon C. (2021), of International Economics”, vol. 29(2), pp. 195–227, https://doi.org/10.1111/roie.12495 Multinational Enterprises and the Global Economy, “Review Dunning J.H., Lundan, S.M.

    A Comparative Study of Direct Investments from France and the United Kingdom in Latvia · 2026 · DOI

  • Future research could address these limitations by employing larger, more representative datasets, conducting comparative cross-country analyses of unified IPA models, and applying longitudinal designs to track the impact of institutional reforms over time. Doing Business 2020: Bangladesh Improves Business Climate, but More Remains to Be Done.

    Streamlining of Investment Promotion Agencies for attracting FDI in Bangladesh · 2026 · DOI

  • The policy recommendations should reflect that FDI is beneficial but not sufficient on its own. The evidence sug- gests that the labor-market gains from FDI are strong- est when they are supported by domestic investment, economic growth, and trade openness. This means that policy should be coordinated rather than isolated, with investment promotion linked to a broader development strategy. First, African governments should continue to attract FDI, but they should prioritize sectors with strong employment multipliers. Labor-intensive and value- adding sectors are more likely to generate jobs for both skilled and semi-skilled workers, especially for young people entering the labor market. Incentives should therefore favor investments that create local linkages, support supply chains, and expand domestic participa- tion rather than projects that are highly enclave-oriented or excessively capital-intensive. Second, domestic investment should be strengthened alongside the attraction of foreign capital. Because the results show that local investment also lowers unem- ployment, governments should improve access to credit, reduce the cost of doing business, and support small and medium-sized enterprises. Public infrastructure, indus- trial support policies, and stable macroeconomic condi- tions can help domestic firms expand employment and better complement FDI inflows. Third, trade openness should be deepened in a way that supports productive employment. Since openness is consistently associated with lower total and youth unemployment, governments should reduce unnecessary trade barriers, improve logistics, and strengthen export competitiveness. However, openness should be paired with industrial and skills policies so that local firms and workers can compete effectively in more integrated markets. Fourth, economic growth should be treated as a core employment policy rather than a separate macroeco- nomic objective. The interaction results show that FDI creates more employment where growth is stronger, so governments should pursue policies that raise produc- tivity, improve infrastructure, and enhance institutional quality. Better governance, lower transaction costs, and more reliable institutions can improve absorptive capac- ity and increase the employment payoff from investment. Finally, future FDI strategy should focus more carefully on sectoral composition and skills alignment. Policymak- ers need to identify which industries create the most jobs for young people and design training systems that pre- pare workers for those opportunities. This is especially important because a mismatch between investor demand and local labor skills can weaken the employment effect of otherwise beneficial foreign investment.

    Foreign direct investment inflows and unemployment dynamics in Africa · 2026 · DOI

  • interpreting The study has several limitations that must be considered while the findings. It relies only on secondary data from official sources, which may be subject to revisions or reporting delays. The study period (2014–15 to 2025–26) is relatively short to capture long-term trends. Additionally, the study focuses on quantitative analysis and does not include qualitative factors such as policy changes, political conditions, and global economic shocks affecting GDP. LITERATURE REVIEWS 1. Theodore H. Moran (2003) researched FDI and Development: Role of International Rules and Regulations. The objective was to examine global policies influencing FDI and protect host countries’ interests. The methodology included descriptive and comparative analysis. Findings showed that long- term economic development, while short-term investments provide limited benefits. positively supports FDI and 2. R. Anitha (2012) examined Foreign Direct Investment and Economic Growth in India. The objective was to identify issues affecting FDI inflows improvements. The methodology involved analysis of secondary data that from official reports. Findings economic reforms and globalization significantly increased FDI inflows and strengthened India’s economic performance. indicated suggest 3. Mahanta Devajit (2012) analyzed the impact of Foreign Direct Investment on the Indian Economy. The objectives included evaluating FDI’s effect on domestic investment and human capital formation. The study relied on secondary data analysis. Findings revealed that the impact of FDI depends on investor motives, sector characteristics, and government policies. 4. Sarba Priya Ray (2012) examined the Impact of Foreign Direct Investment on Economic Growth in India: A Cointegration Analysis. The objective was to study the long-run and short-run relationship between FDI and GDP. The study applied and Error Correction Model cointegration techniques, and results confirmed a significant long- term equilibrium relationship between FDI inflows and economic growth. 5. Gulshan Akhtar (2013) examined Inflows of FDI in India: Pre and Post Reform Period. The objective was to analyze the sector-wise distribution of FDI across industries such as services, construction, and telecommunications. The study used secondary data from sources including the Reserve Bank of India and the Department of Industrial Policy and Promotion. The findings indicated that India has emerged as one of the fastest-growing economies and a major global investment destination. 6. R. B. Teli (2013) analyzed A Critical Analysis of FDI Inflows in India. The objectives were to study growth patterns and the impact of FDI on economic indicators. The methodology relied on secondary data from international and national reports. Findings revealed that FDI growth positively influenced GDP, employment generation, and foreign exchange reserves. 7. Angad Singh Maravi (2016) studied Foreign Direct Investment (FDI) in India: A Key for Economic Growth in India. The objective was to assess the impact and recent trends of FDI in India. The study used a descriptive approach based on secondary data. Findings that FDI to economic growth significantly contributes through improved management practices. technology, showed capital, and 8. Jyoti Gupta and Dr. Rachna Chaturvedi (2017) conducted a study titled A Study to Analyze FDI Inflow to India. The objective was to examine trends and forecast future FDI inflows. The methodology involved long-term trend analysis using secondary data. Findings showed that FDI plays an important role in bridging the gap between savings and investment in India. 9. N. Prasanna (2017) studied Impact of Foreign Direct Investment on Export Performance in India. The objective was to assess the relationship between FDI and manufactured exports. The methodology used economic data analysis of GDP and export variables. Findings confirmed that FDI has a significant positive effect on India’s export performance.

    A Quantitative Study of FDI Impact on India's Economic Growth (From 2014-15 To 2025-26) · 2026 · DOI

  • Background and Motivation: Foreign direct investment (FDI) has been widely examined as a potential driver of economic growth, yet empirical evidence for Morocco remains inconclusive due to methodological limitations and endogeneity concerns.

    Foreign Direct Investment and Economic Growth in Morocco: Revisiting the Evidence with 2SLS · 2026 · DOI

  • Our findings show that attracting FDI alone is insufficient for expanding output; countries must also develop robust financial infrastructure and effective governance to fully benefit from foreign capital.

    Foreign Direct Investment and Economic Output: The Conditional Roles of Financial Development and Institutional Quality · 2026 · DOI

  • This study sheds light on this underexplored topic by examining the environmental, social, and governance (ESG) strategy of foreign MNEs amid tension between their home and host countries.

    <scp>ESG</scp> as a nonmarket strategy to cope with geopolitical tension: Empirical evidence from multinationals' <scp>ESG</scp> performance · 2024 · DOI

  • The mixed results from the existing empirical literature on FDI inflow dynamics triggered the undertaking of this study to contribute to the ongoing debate on the subject.

    Foreign Direct Investment Inflow Dynamics: The Case of Central and Eastern Europe · 2023 · DOI

  • The literature review?s primary concern is to provide underpinnings for further research on inward FDI distribution in the contemporary international political scene.

    The political determinants of inward FDI · 2023 · DOI

  • This finding serves as a basis for further investigation of the specific subsectors (NACE 2-letter classification) within manufacturing, and the empirical investigation finds that not all FDI inflows within manufacturing enhance economic growth.

    FDI and Economic Growth: A new Look from the Sectoral Perspective · 2022 · DOI

  • Originality/value By taking a new compositional based theoretical perspective, this study examined the underexplored phenomenon of how emerging market firms can differentiate their offerings in advanced export markets in order to achieve a better strategic performance during external shocks such as the COVID-19 pandemic.

    Composite collaboration and the differentiation strategies adopted by emerging market firms in advanced markets during the COVID-19 pandemic · 2022 · DOI

  • Purpose This study investigates an under-researched yet fundamental question of how a developed country multinational enterprises (DMNE) perceives and manages political risks when undertaking infrastructure projects in the emerging markets (EMs).

    International projects and political risk management by multinational enterprises: insights from multiple emerging markets · 2021 · DOI

  • It argues that while theories of developmental state and global production networks contribute important insights on the roles of state agency and inter-firm relations in the rise of global lead firms from East Asia, they are insufficient to interpret the recent overseas ventures of Chinese companies in Africa.

    Chinese Telecommunications Companies in Ethiopia: The Influences of Host Government Intervention and Inter-firm Competition · 2020 · DOI

  • Abstract Hiring experts in centers of state-of-the-art technology is an important way in which a multinational enterprise (MNE) can gain competitive advantage, and yet use of this mechanism remains under-researched.

    Catching up by hiring: The case of Huawei · 2020 · DOI

  • Yet, there has been limited research on which firms benefit most from these reforms: are the opportunities that they create seized primarily by the most prominent firms, thus perpetuating a “rich get richer” dynamic, or by previously peripheral firms, thus leveling the playing field? We address this question by exploring how intellectual property rights (IPR) reforms affect access to international alliances, a valuable channel of resources for firms in emerging markets.

    Do Institutional Reforms Perpetuate or Mitigate the Matthew Effect? Intellectual Property Rights and Access to International Alliances · 2019 · DOI

  • , generalized ordered logit model (GOLM)) to deal with the restrictive “parallel regression/proportional odds” assumption of the standard ordered logit model (OLM), which has not been adequately addressed in previous studies on the foreign ownership–innovation relationship.

    Foreign Ownership, R&D and Firm Innovation in ASEAN Countries: A Generalized Ordered Logit Model · 2019 · DOI

  • Though few studies have done so, this paper aims to evaluate the role of natural resources in Chinese OFDI in Africa with the aim of ascertaining whether this resource role in Africa is different for the rest of the world.

    Investing for Resources? Comparison of Chinese Outward Foreign Direct Investment in Africa with the rest of the World · 2019

  • We investigate what determines a multinational enterprise’s (MNE) propensity to engage in lobbying and bribing in host countries where the overall institutional development for market exchanges is insufficient, and thus, their governance systems are relatively weak.

    Bending the Rules or Changing Them? MNE Responses to Institutional Challenges in Transition Economies · 2019 · DOI

  • Whereas most microeconomic research about Central and Eastern European (CEE) economies is concerned with the effects of FDI, this paper fills a gap in the literature by comparing the evolution of FOS and DCs performance during 2003–2012.

    The relative performance of foreign-owned subsidiaries and domestic companies · 2018 · DOI

  • Second, while banking on offshore services enables the Philippines to encourage regional deconcentration, it remains to be seen whether future growth of the IT-BPO and ESL industries will result in attaining inter-regional balance and providing a decent alternative to overseas migration.

    An alternative to ‘exodus capitalism’? Offshore services in Iloilo City, Philippines · 2017 · DOI

  • Various researchers in the past have contributed to the literature providing newer pieces of evidence to explain the phenomenon of FDI flows; however, there is no consensus on a single approach or theory.

    A SUMMARY OF THEORIES GOVERNING FDI INFLOWS IN DEVELOPING AND DEVELOPED COUNTRIES · 2017

  • Firstly, this work develops a production function including the key direct and indirect effects of hosting FDI in order to (through the proof of endogenization of FDI) show that a simple inclusion of FDI as the next (usually along with capital and labor) factor of growth may lead to spurious and, therefore, inconsistent results.

    The Role of Foreign Direct Investment in Economic Growth. The Production Function Perspective · 2017 · DOI

  • Originality/value A limited research work is available that could help in identifying the role of institutional and economic factors simultaneously in attracting FDI in the SAARC, Central Asian and ASEAN regions.

    Institutional quality and foreign direct investment inflows: evidence from Asian countries · 2017 · DOI

  • Filling the gap in the literature on the international diversification-performance (IDP) relationship, which focuses primarily on firm-level characteristics and overlooks the role of labour factors as contingent variables, we draw attention to the workplace level dynamics by exploring how the two types of labour flexibility—functional and numerical flexibility—moderate the impact of international diversification on performance.

    Maximizing the Benefits of Internationalization: The Moderating Role of Labour Flexibility · 2016 · DOI

  • Most importantly, the study identifies gaps in the literature and highlight ten institutional distance factors that provide directions that influence on firm performance following CBMAs in different institutional settings in different countries because institutions vary across countries because of their path-dependent nature.

    Institutional distance factors influencing firm performance: A hypothetical framework from cross-border mergers and acquisitions · 2016 · DOI

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