Determinants of Foreign Direct Investments in Agriculture of Danube Region
19 Pages Posted: 20 Dec 2017
Date Written: December 14, 2017
The research investigates the determinants of foreign direct investments in agriculture in the countries of Danube region. Pooled model of agricultural foreign direct investment inflows based on the theoretical framework of Ownership Location Internalization paradigm was formulated and estimated by using ordinary least squares method and panel data for the period from 2009 to 2016. The results suggest that the foreign direct investments in agriculture of the region are primarily resource-seeking, although market-seeking investments are also present. There is also evidence of sector-specific impact of certain frequently examined determinants which contradict theoretic expectations and highlight the importance of the sector-level studies of foreign direct investment. The research adds to the limited literature concerning foreign direct investment determinants in the context of agriculture and has significant implications for the agricultural and foreign investment policymakers.
Keywords: foreign direct investments, determinants, agriculture
JEL Classification: F21, Q17, P32
Suggested Citation: Suggested Citation