ABSTRACT
The chapter, through review of literature, traces the theoretical constructs of FDI elucidating the factors determining FDI flows including the determinants of outward foreign direct investment (FDI) from a nation. The study underscores the most commonly accepted determinants of FDI and explores that whether one theoretical construct be pin-pointed for explaining the determinants of FDI. The beneficial as well as the detrimental, reverberations of FDI on the host nations are also identified in the chapter through sifting of literature on FDI. The chapter delves into the determinants of the outward FDI from Asia to Europe and explores that can the traditional theories of FDI explain the factors determining FDI flows from Asia to Europe. The chapter traces the trends of FDI in the European region and explores that whether the whole European region has benefited from FDI inflows and outflows and that there are no investment asymmetries in the region.
The chapter has traced the literature on FDI through open sources like SSRN, research databases like EBSCO, ProQuest, and Science Direct. The literature reviewed for this chapter has a spread of over 50 years. The earliest study being referred to in this chapter is of the year 1970 and the latest literature is of the year 2020.
