Author:Brewer, T.
Title:Government policies, market imperfections, and foreign direct investment
Journal:Journal of International Business Studies
1993 : VOL. 24:1, p. 101-120
Index terms:GOVERNMENT
POLICY
FOREIGN INVESTMENT
Language:eng
Abstract:The internalization/eclectic theory of foreign direct investment includes the important insight that government policies create market imperfections, which make foreign direct investment an economically rational strategic alternative for firms. This paper reexamined the effect of government policies on market imperfections and foreign direct investment (FDI). The paper examined the following variables and relationships: government policy variables as casual factors affecting FDI; market imperfection variables as intervening factors in the causal connections between government policies and FDI; and the multiple indicators of the various dimensions of FDI as dependent variables.
SCIMA record nr: 108148
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