The Eclectic (OLI) Paradigm provides a conceptual framework that offers a comprehensive explanation of the underlying dynamics of foreign direct investment (FDI). It posits that the primary motivations for FDI can be broadly classified into three categories: market-seeking, efficiency-seeking, and resource-seeking. These three advantages inherent to the home countries serve to determine their respective locational advantages, thus influencing the market selection of foreign investments by multinational enterprises (MNEs). Furthermore, the institutional factors also impact the decisions of investors with regard to their investments, as these factors serve to determine whether or not the foreign investment environment can be considered safe and stable. The present study thus seeks to examine the factors influencing foreign direct investment (FDI) in accordance with the Eclectic (OLI) Paradigm. This article aims to provide a comprehensive analysis of the determinants of foreign investment, with the ultimate objective of informing decision-makers.

Yu Ren. A Review of the Determinants of Outward Foreign Direct Investment (FDI): From the Perspective of the Eclectic Paradigm. Academic Journal of Business & Management (2024) Vol. 6, Issue 11: 128-132. https://doi.org/10.25236/AJBM.2024.061119.

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