Michael D. Williams
Determinants of Outward Foreign Direct Investments from Small Island Developing States
University of the West Indies System
problem statement although burgeoning literature rise multinational enterprises mnes developing economies comparatively less work exists mnes small developing economiesgiven precipitous rise level outward foreign direct investments small economies still clear academic literature policy purposes factors home environment influence rise multinational enterprises smaller economiesthis study aimed determine economic social factors home important influencing level outward foreign direct investments small island developing states sidsapproach achieve research objective literature review first conducted identify factors commonly cited critical motivating domestic firms engaged outward foreign direct investmentsto test factors influential case small island developing economies secondary data variables identified literature collected sources international financial statistics world investment report world economic outlook transparency international world development indicatorsthese data used build 5 year panel datasetthe panel data set consisted 5 years data 19982002 15 small economies defined sids united nations classificationsthese data analyzed using multivariate regression modelthe results model used determine factors influential motivating domestic firms get involved outward foreign direct investmentsresults results revealed level corruption home p 001 per capita income p 000 level economic growth home p 000 influential motivating domestic firms involved outward fdi small island developing statesthese findings reflected economic social factors important influencing level outward fdi sidsconclusion results indicated policy makers sids want encourage domestic firms get engaged outward foreign direct investments needed put policies place grow local economyfor business practitioners results indicated increased need strategic thinking domestic firms engaged international business survive high level competition small markets small economies