Publication

This paper analyzes whether globalization-induced changes have occurred in international competition for foreign direct investment (FDI). The author shows that only little has changed since the late 1980s and that traditional market-related determinants are still dominant factors. Among non-traditional FDI determinants, only the availability of local skills has clearly gained importance. As for the interface between trade policy and FDI, the author argues that the tariff jumping motive for FDI had lost much of its relevance well before globalization became a hotly debated issue.