Abstract
Forty-four economic, social, political and policy variables are tested for their significance in discriminating among three groups of developing countries designated “unattractive,” “moderately attractive,” and “highly attractive” with respect to foreign investment in manufacturing. Among the six essential discriminators, the only policy variable to emerge is the corporate tax level.
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*Franklin R. Root is Associate Professor and Chairman of the Multinational Enterprise Unit of the Wharton School. He holds an MBA from the Wharton School and a Ph.D. from the University of Pennsylvania. His publications include two books: Strategic Planning for Export Marketing and International Trade and Investment (Fourth Edition). He is currently involved in research projects on multinational enterprise and public policy and political risk management under the auspices of the Worldwide Institutions Research Group of the Wharton School.
**Professor Ahmed received his Ph.D. from the University of Pennsylvania in 1976. Currently, he teaches in the Department of Business Administration at the University of Khartoum. He has served as consultant for the United Nations on development projects in Africa. His research focus is the role of direct foreign investment in promoting economic development in Africa.
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Root, F., Ahmed, A. The influence of policy instruments on manufacturing Direct Foreign investment in developing countries. J Int Bus Stud 9, 81–94 (1978). https://doi.org/10.1057/palgrave.jibs.8490670
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DOI: https://doi.org/10.1057/palgrave.jibs.8490670