Analitički okvir determinanti sdi: primena oli modela
Analitical Framework Of Fdi Determinants: Implementation Of The Oli Model

Summary/Abstract: The paper represents the author's attempt to stress the importance of foreign direct investment (FDI) as the key factor of economic development, and basic mechanism of capital flows, more desirable than bank debts or portfolio equity investment. The fundamental premise of Dunning's eclectic paradigm or the OLI model is that returns on foreign investment as a basic motive for FDI can be explained by three groups of factors: the ownership advantage of the firm (O), location factors (L), and by internalisation of trasaction costs (I). Since we can assume that foreign investors already posses certain competitive (ownership) advantage, and they are able to internalize transaciton costs, the key remaining factor in decision-making process are the location advantages of the host country. There is a bulk of location determinants, and among them the author especially points out the institutional factors, which derive from the FDI policy regime of a country.

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