Determinants Of Foreign Direct Investment

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Determinants of Foreign Direct Investment



First, I would like to thank God and my family for giving me unconditional support through all my personal and professional development. I would also like to show my appreciation to a number of people that where key to the development of this study. First, I am very grateful with Mr. Alexander Bejarano from Ecopetrol for being very supportive and helpful with his wide knowledge and experience in the topic of study. I would also like to thank Mr. Juan Guillermo Perez and Mr. Nicolas Ingram for invaluable information and helping me with interviews. I am also grateful with Mrs. Clemencia for facilitating me first hand material that was critical for this study. I also thank the companies who took the time and actively participated in this study. Last but not least, I would like to thank my supervisor Daniele Archibugi, Department of Management for his useful advice and patience.


I, (Your name), would like to declare that all contents included in this dissertation stand for my individual work without any aid, & this dissertation has not been submitted for any examination at academic as well as professional level previously. It also represents my own views & not essentially the ones associated with university.

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The paper highlights the main determinants of Foreign Direct Investment in developing countries particularly Columbia as it is one of the developing countries where the Multinational Corporation are investing heavily. The research study has discussed various perspectives of FDI that have been determined in the past studies. The determinants of the Foreign Direct Investment vary greatly with respect to the region the country lies in. However, more or less, it has been observed that the determinants of FDI remain same for a;; the developing countries. The developing country that has been analysed in the research study is Columbia. During the past few decades, the competition for FDI has increased around the world with increasing contribution from developing and emerging countries. These countries are aware of the inherent benefits that such phenomenon brings to economic development. It is now their key role to adjust their environments to attract such investment. There are different factors that affect the Foreign Direct Investment in Columbia. The education system of the country is not very efficient that makes the students less productive in the future. Thus, they cannot contribute in the economic development of the country and the attraction for the Multinational Corporations. Taking a closer look at Colombia, this paper examines the main determinants of FDI and some of the gaps for improvement. It is found that Colombia's business environment for the attraction of FDI has improved over the past decade; however legal irregularities, weak infrastructure and education system need to be strengthen at a faster speed if the nation wants to achieve its micro and macroeconomic objectives.







Background of the Research Study2

Problem Statement2

Aims of the Research Study3

Significance of the Research Study4

Rationale of the Research Study4

Research Questions5

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