## Foreign Direct Investment in the World Economy

_IMF Working Papers, June 1, 1995_

## Source details

**Canonical URL:** [Foreign Direct Investment in the World Economy](https://www.imf.org/en/publications/wp/issues/2016/12/30/foreign-direct-investment-in-the-world-economy-1112)

## Other formats

- [Markdown version](/en/publications/wp/issues/2016/12/30/foreign-direct-investment-in-the-world-economy-1112/index.md)
- [Structured JSON version](/en/publications/wp/issues/2016/12/30/foreign-direct-investment-in-the-world-economy-1112/index.json)
- [Bundle manifest](/en/publications/wp/issues/2016/12/30/foreign-direct-investment-in-the-world-economy-1112/bundle-manifest.json)

## Bibliographic details
- Authors: Edward M. Graham
- Published: June 1, 1995
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451847901.001

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### Summary
- Examines the role of foreign direct investment (FDI) in international capital flows.
- Surveys theories of the determinants of FDI.
- Reviews the economic consequences of FDI for both host (recipient) and home (investor) nations in light of empirical studies.
- Discusses policy issues surrounding possible negotiation of a “multilateral agreement on investment”.

### Major themes and findings
- Determinants of FDI:
  - Theories of the determinants of FDI are surveyed (the source summarizes theoretical frameworks without listing specific models on the landing page).
- Economic consequences:
  - Empirical studies are used to assess impacts of FDI on host nations (recipient) and home nations (investor).
- Policy issues:
  - Policy considerations related to a potential “multilateral agreement on investment” are discussed.

### Subject classification and keywords
- Subject: Balance of payments, Capital formation, Economic sectors, Foreign direct investment, National accounts, Transnational corporations
- Keywords: Capital formation, competitor firm, Europe, FDI flow, FDI surge, Foreign direct investment, Global, host nation, investor firm, North America, outward FDI, parent firm, Transnational corporations, WP

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/foreign-direct-investment-in-the-world-economy-1112_