The determinants of Germany’s outward foreign direct investment (OFDI)

Abdul Wahab Aidoo, Samra Halilovic, Ognjen Ridic, Goran Ridic

Abstract


The aim of this study is to investigate the determinants of Germany's OFDI in the last 21 years on the set of top ten Germany’s OFDI destination (United States of America, United Kingdom, China, France, Poland, Mexico, India, Turkey, Spain and Russia (Russian Federation)) by using panel data analysis. The research revealed that Germany’s OFDI are driven by market seeking motives (FDI vertical), and also highlighting the importance of the stable political environment, attractive tax environment, more trade openness, and stable macroeconomic environment of the top ten Germany’s partners for attractiveness of the Germany’s OFDI. It indicates that openness of an economy is statistically significant in attracting FDI.

Keywords


Germany's OFDI, tax policy, market size, political environment, macroeconomic environment, panel data analysis.

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DOI: http://dx.doi.org/10.21533/pen.v10i6.3303

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Copyright (c) 2022 Abdul Wahab Aidoo, Samra Halilovic, Ognjen Ridic, Goran Ridic

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

ISSN: 2303-4521

Digital Object Identifier DOI: 10.21533/pen

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License