THE DETERMINANTS OF SECTORAL INWARD FDI PERFORMANCE INDEX IN OECD COUNTRIES

THE DETERMINANTS OF SECTORAL INWARD FDI PERFORMANCE INDEX IN OECD COUNTRIES

The main aim of this paper is to investigate sectoral aspect of foreign direct investment (FDI) in Organization for Economic Cooperation and Development (OECD) countries. In particular we first create Sectoral Inward FDI performance index which allows us to draw conclusions about comparative advantages of a particular country in a certain sector, and then analyse its main determinants in the period 2005-2010 using panel analysis. The results indicate that the main FDI determinants vary significantly across sectors, and this should be taken into account by policy-makers.

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