Site-Selection Process and Agents in FDI Promotion

Zoran Vaupot

Site-Selection Process and Agents in FDI Promotion

Key words: FDI promotion, promotion agents, site selection, Investment Promotion Agency (IPA), formal and informal institutions, role of media.

Abstract:
In the last few decades, foreign direct investments have grown in their importance. We have access to a rich set of literature about FDI determinants and FDI promotion activities. The research about the site-selection process conducted by foreign investors is much less abundant. We propose an explanation to this phenomenon and possible changes in strategic approach by combining conclusions from existing literature concerning the topics about investment promotion process, its stakeholders, site-selection process, and institutional theory. The main conclusions are that a better customer-centric orientation is needed in the whole process of FDI promotion and that the relatively neglected importance of media should be improved by putting more attention on their role according to the findings of institutional theory; these are also the proposed axes of future research. The originality of the present research is the combination of theoretical findings with the practical experiences of the author gained while working as an international business consultant.

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