ABSTRACT
Foreign direct investment (FDI) plays a very crucial role in economic growth, especially in the case of emerging economies,1 as there is deficiency of capital for investment to sustain the growth rate. It also contributes to the economy by technology transfer, creating new employment opportunities and transfer of new management practices and creating backward and forward linkages. It is important to identify the major determinants of the FDI, given the variations in such inflow in different markets. These determinants allow policy makers to understand the scale and direction of FDI flows, thereby enabling them to formulate a comprehensive foreign investment policy that is more conducive in attracting FDI.
