Foreign Direct Investments - The Location Problem Cover Image

Strane direktne investicije - problem lokacije
Foreign Direct Investments - The Location Problem

Author(s): Radovan Kastratović
Subject(s): Economy
Published by: Udruženje banaka Srbije p.u.
Keywords: location problem; foreign direct investment; AHP; decision-making;

Summary/Abstract: Foreign direct investments are a phenomenon in its nature closely related to the location problem. Despite this fact, the spatial component is often neglected in the studies concerning the problem of foreign direct investment. The aim of this paper is to review the location problem in the context of foreign direct investment, and to enable better understanding of the decision-making process of foreign investors regarding location. This could prove to be beneficial for investors, who would be able to utilize the principles presented in this paper in the formalization of the investment location decision-making process, as well as for the policy-makers interested in attracting foreign investors. The paper provides a systematic review of the existing theory regarding foreign direct investment location; presents a list of criteria which could be included in the process of solving the location problem and describes the possibilities of applying the analytic hierarchy process as the method for selecting the optimal investment location.

  • Issue Year: 46/2017
  • Issue No: 4
  • Page Range: 74-107
  • Page Count: 34
  • Language: English, Serbian
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