How Is the Market Size Relevant as a Determinant of FDI in Developing Countries? A Research on Population and the Cohort Size

How Is the Market Size Relevant as a Determinant of FDI in Developing Countries? A Research on Population and the Cohort Size

AKIN, Mustafa Seref

The small size of the market in developing countries is associated with non-market seeking FDI activities. Even though, GDP per capita is a poor indicator for the market seeking FDI activities in developing countries, both population and GDP are crucial. The findings of the study suggest that FDI is concerned with the size of market in developing countries not in per capita basis but rather in aggregate size. More precisely, FDI will more likely focus on regional areas rather than on an expansion through the country. In terms of cohort size, the size of middle age cohort promotes FDI, and old and young age cohorts weaken FDI.

Conference or Workshop Item
PeerReviewed

2009-06

286