Multi-level Determinants of Inward FDI Ownership

In this article we analyze the determinants of inward FDI ownership in developing countries using the Enterprises Survey Data of the World Bank for developing and emerging economies, and country level data from various sources. Using a multi-level logit model, we analyze which institutional and structural variables at both firm and country levels impact inward FDI. We find that the firm structural characteristics and their perceived obstacles are the most important determinants of inward FDI. We also find that the macroeconomic setting of a country has a relatively smaller impact while the institutional quality of a country as a measure does not have any significant influence on inward FDI.