Determinants of Foreign Direct Investment: A Cross Country Analysis (1980-2007)

FDI is counted as one of important factors of growth and economic development in host countries that has had increasing process recently. Determinants recognition of FDI can be useful for developing countries. This paper considers determinants of FDI in 209 countries during 1980-2007. Mentioned analysis has estimated with fixed effect method for separating special differences and has estimated regional special effect too. The findings of a econometric analysis indicated that the degree of openness، rate of capital return، infrastructure quality، human capital and lag of FDI are significant and have positive effect on FDI، but government expenditure، corruption، political risk، inflation and liquidity are insignificant.