The determinants of Germany’s outward foreign direct investment (OFDI)

The aim of this study is to investigate the determinants of Germany's OFDI in the last 21 years on the set of top ten Germany’s OFDI destination (United States of America, United Kingdom, China, France, Poland, Mexico, India, Turkey, Spain and Russia (Russian Federation)) by using panel data analysis. The research revealed that Germany’s OFDI are driven by market seeking motives (FDI vertical), and also highlighting the importance of the stable political environment, attractive tax environment, more trade openness, and stable macroeconomic environment of the top ten Germany’s partners for attractiveness of the Germany’s OFDI. It indicates that openness of an economy is statistically significant in attracting FDI