Abstract
AbstractForeign direct investments have grown over the last decades which are related to the ongoing globalization process. The current literature shows research works dealing with the topic of influence factors on foreign direct investment (FDI) decisions which may occur during the decision-making process. A new causal model has been developed to get in-depth view on macroeconomic perspective. Motives to do FDI are strongly impacted by macroeconomic factors which may influence upcoming decisions. To be able to understand the impact of the macroeconomic environment on FDI decisions the factors have been diversified and conceptualized, divided into three subgroups of independent latent variables in the construct. Two additional intervening variables, fiscal incentive schemes and uncertain and volatile environmental circumstances have been included to the model to gain a holistic picture of macroeconomic influence factors. One hundred and thirty-eight representative persons from the German and Austrian automotive industry served a basement of data for analysis. Expected market development, production factors, and public and governmental factors define the framework requirement of potential impact factors on FDI motives.KeywordsInternationalizationMacroeconomic factorsForeign direct investment (FDI)
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