Factors Affecting Foreign Direct Investment: The Case of the Netherlands

Abstract

This study analyzes the effect of gross domestic product, inflation, and natural resource rent on foreign direct investment in the Netherland. Our analysis employs the Autoregressive distributed lag model from 1980 to 2018. The empirical results show that gross domestic product and natural resource rent positively affected foreign direct investment while inflation negatively affected both the short and long run. This study recommends that government officials and policymakers formulate policies to promote foreign direct investment for the development of the economy of the Netherland.