Determinants of FDI inflows to Next 11 countries: A panel data analysis

As the inclination to FDI shifts from developed to developing economies, investors are flocking to emerging markets, particularly to the Next-11 nations, which render additional growth and investment opportunities. Meanwhile, these countries have become popular FDI destinations; the goal of this study is to look at the major factors that make these countries appealing to FDI destinations. As a result, this research examines the factors that influenced FDI inflows into these nations from 1995 to 2019. Market size, trade openness, natural resource availability, economic stability, and infrastructure facilities are among the potential explanatory factors identified in this research. On the panel data set, which includes data from 11 nations, a fixed-effect model is used. The data show that market size, trade openness, natural resource availability, and economic stability are all possible predictors of FDI inflows to these nations, whereas infrastructure appears to be a minor one.