Examining the Factors Affecting the Foreign Direct Investment in the Global South Region

Abstract

This research endeavours to scrutinize the determinants influencing the attractiveness of foreign direct investment (FDI) in countries in the global south. The investigation addresses this objective by analysing data collected from 12 nations spanning the years 1998 to 2022, encompassing variables such as broad money, carbon emissions, corruption levels, inflation rates, exchange rates, gross domestic product (GDP), government stability, government revenues, population size, renewable energy consumption, and trade activities The study outcomes reveal that specific variable, namely CO2 emissions (metric tons per capita), Consumer Price Index, Control of Corruption: Estimate, Current account balance (% of GDP) Domestic Currency per US Dollar, Renewable energy consumption and Trade (% of GDP) exert a statistically significant impact on the FDI dynamics within the region. The insights and analyses presented in this report are helpful for international investors and decision-makers contemplating investments and expansions in the global south