ABSTRACT
This chapter explores the proposition that a country’s international direct investment position, and changes in that position, may be usefully explained by the eclectic theory of international production. Using data on the direct investment flows (or changes in the direct capital stock) of some sixty-seven countries, over the period 1967–78, it also suggests that there is a systematic relationship between the determinants of those flows and the stage and structure of a country’s economic development.
