Foreign Direct Investment In Canada Research Articles

Les investissements directs étrangers au Canada : des débats qui ont forgé l’histoire économique canadienne

Les motivations et les objectifs qui configurent les actions d’un État reposent sur un ensemble de variables, parfois instituées par la conjonction d’idées et de débats. Le cas de l’investissement direct étranger au Canada présente à cet égard un intérêt particulier en raison des nombreux débats qui se sont succédés. Cet article propose de les revoir sous forme chronologique, de la Politique nationale jusqu’à aujourd’hui. Un accent spécifique est mis sur l’évolution des idées et motivations de l’État canadien vis-à-vis des firmes multinationales étrangères. Les objectifs économiques fondamentaux poursuivis par le gouvernement seront ainsi distingués des idées sur les moyens pour les atteindre. Cette longue traversée permet de mieux comprendre non seulement les enjeux des différents débats, mais aussi les interrelations entre ceux-ci et l’impact de certaines idées sur les institutions économiques canadiennes.

Economic de-integration in North America and foreign direct investment from Japan

We investigate, from the perspective of the auto industry, the impact of US steel and aluminum tariffs and the resumption of auto tariffs under the revised North American Free Trade Agreement, on trade in North America and foreign direct investment (FDI) from Japan. The results of our policy simulation analyses with a recursive dynamic computable general equilibrium model are as follows. Canada and Mexico, being alternative trade partners with the US and other countries, would benefit from US steel and aluminum tariffs. Due to the auto tariffs on intra-North America exports, Canada and Mexico would lose a large part of their windfall benefits from US steel and aluminum tariffs. Japan’s FDI in Canada and Mexico would fall sharply. As the de-integration of North American economies proceeded, Japan would increase its auto production and exports. The negative impact on Japan’s welfare, largely the result of US steel and aluminum tariffs, would be neutralized by the US abolition of tariffs on Japanese auto exports.

Implications of Canada’s restrictive FDI policies on employment and productivity

The merits of foreign direct investment (FDI) have been well documented, thus explaining the openness of many countries to foreign capital. There is, however, some debate on the importance of FDI into key basic business services sectors such as financial services, air transportation services, and telecom services, which remain protected in many countries, including Canada. These restrictions, together with the presence of a review mechanism for foreign investment, has resulted in Canada being ranked above average in terms of restrictiveness by the OECD. We estimate that a leveling down of Canadian FDI restrictions to average OECD levels would raise Canadian labor productivity by a very large 0.79%. It would also either raise employment by 137,400 jobs or raise annual earnings for each Canadian worker by CA$648, or $9.6 billion economy-wide. These results therefore highlight the merits of FDI to local economies.

Macro-Economic Effects of Inward and Outward FDI in Canada

Using a detailed data on 27 Canadian NAICS industries over the period 1999–2015, we estimate a small macro-econometric model for assessing the macro-economic impacts of inward and outward foreign direct investment (FDI) in Canada. The estimated coefficients of the model in turn are used to simulate the medium to longer-term macro-economic impacts of a 10 percent increase in the two FDI stocks in Canada. The simulation results show a significant positive impact of the two FDI stocks on investment, innovation, trade flows, employment creation and real GDP. The economic impacts of inward FDI on real GDP and employment, however, are significantly bigger than the outward FDI impacts. A sustained 10% increase in the two FDI stocks would raise Canada’s real GDP in the medium term by 1.2% per year.

Foreign Direct Investment in Canada – The Case for Further Openness and Transparency

Canada’s performance in attracting foreign direct investment faces serious headwinds, according to a new report from the C.D. Howe Institute. In “Foreign Direct Investment in Canada – The Case for Further Openness and Transparency” author Daniel Schwanen makes a case for more open and transparent foreign investment rules in Canada.

An Analysis of Macro Mechanisms in the Development of Chinese Outward Foreign Direct Investment

This article discusses in detail the relevant mechanisms that affect the development of Chinese outward foreign direct investment (OFDI). It first describes the current situation in China and the influences these mechanisms have on the development of OFDI. It then points out current problems, discusses the effects of those problems, and illustrates the roles of the relevant mechanisms. China's foreign direct investment in Canada is growing, which has increased the economic ties between the two countries, but Chinese enterprises are facing strengthened scrutiny in the acquisition of Canadian companies. This article also examines the practices and experiences of other countries in this field and presents suggestions and ideas on how to establish and improve the mechanisms in the growth of Chinese transnational corporations.

Managerial Analysis of the Attraction of FDI in Canada

This research is an analytical synthesis of managerial strategies for attracting Foreign Direct Investment (FDI) in Canada. It establishes from a literature review different strategies devoted to the issues and benefits of FDI relative to the capitalization of FDI in Canada. In terms of contributions of the study, we propose a theoretical basis that could allow managers, entrepreneurs, and policy makers to make appropriate decisions regarding the choice of investment sites. This review highlights the importance of FDI attraction policy in Canada. Results suggest that there are too many variables (image of country, market Size, infrastructure, cost of inputs, transaction cost, resources, and ethics) that need to be considered when selecting a site for investments. Implications of the research and limitation have been provided.

Simplifying the Rule Book: A Proposal to Reform and Clarify Canada's Policy on Inward Foreign Direct Investment

Canada’s foreign direct investment (FDI) review regime, already criticized for its vague “net benefit” test for large proposed takeovers, has become potentially even more confusing to would-be investors in recent years. This Commentary proposes reforms to make the application of Canadian FDI rules more transparent, and give Canada a far better reputation as a place to invest. The author advocates an end to foreign investment economic review, leaving security to a separate committee, and closing some sectors completely or partially to foreign investment, as is now the case, but with these restrictions subject to periodic, mandatory reviews. Under the author’s proposal, Industry Canada would cease reviewing inward FDI for compliance with a “net benefit” test and would be only one participant in a committee reviewing FDI proposals for national security concerns. It would take central responsibility for monitoring federal sectoral ownership policies and would regularly review the effect of such policies, including an assessment of the ongoing need to keep in place foreign ownership limits on a sector, or to remove such limits. Clearly, there needs to be continuing analysis of sectoral limits as technology and government policies change over time. The rationale behind such an approach rests on the rejection of the widespread idea that securing controlling ownership of a Canadian-owned firm allows a foreign investor, whether or not an SOE, to operate at will in Canada. Nothing could be further from the truth. Regarding natural resource exploration and development alone, there are myriad laws and regulations for licences and other permissions on exploration, environmental review, sourcing of supplies and other inputs, as well as many other activities requiring approvals from various levels of government. Where improvements in such laws, regulations and policies are needed, they should be instituted and apply to both domestic and foreign firms with regard to their Canadian operations. It makes no sense to have rules that impose conditions on inward FDI but not on existing local firms.

Foreign Direct Investment in Canada

This article analyzes foreign direct investment in Canada. In 2009, Canadian direct investment in the United States was down sharply, generating a net liability position. Direct investment in other countries also declined, but the overall net asset position was sustained. The value of Canada’s direct investment abroad was declined by 7.5 percent in 2009.

Inward FDI in Canada and Its Policy Context

Canada has actively participated in the corporate globalization process and is a major importer of foreign direct investment (FDI). Canada’s high levels of inward FDI (IFDI) over the past 25 years reflect its improved business climate, reduced restrictions on foreign ownership, and a prospering economy. Like other developed economies, Canada experienced declining FDI inflows in 2008 and 2009, largely due to the dramatic fall in mergers and acquisitions (M&As) and the global economic recession. However, the outlook for 2010 and beyond is promising because of expected economic expansion in Canada and other countries, and improved global financial markets. Moreover, the Canadian government has sent strong signals to foreign investors that Canada is open for business by, among other things, lifting restrictions on previously protected sectors and increasing the financial thresholds for the review of foreign investments.

North American Integration and Canadian Foreign Direct Investment

Abstract We investigate how economic integration in North America has altered the pattern of foreign direct investment (FDI) to and from Canada. The theoretical analysis suggests that while the Canadian-U.S. free trade agreement should generate less FDI, the addition of Mexico in the North American Free Trade Agreement (NAFTA) produces the opposite effect. The fall in trade costs results in investment diversion from the U.S. and Canada, yet lower fixed costs may increase FDI even in those countries via an increased incentive to locate production facilities abroad rather than only domestically. Using a difference-in-differences estimator, we find that U.S. FDI in Canada as well as Canadian FDI in the U.S. have expanded disproportionately since NAFTA, suggesting that the latter effect dominates.

Review: An Independent Foreign Policy for Canada? Challenges and Choices for the Future

AN INDEPENDENT FOREIGN POLICY FOR CANADA? Challenges Choices for Future Brian Bow Patrick Lennox, editors Toronto: University of Toronto Press, 2008. 248Pp7 $24.95 PaPer ISBN 978-0-8020-9634-0John English's biography of Pierre Trudeau recounts a White House discussion following prime minister's 1971 visit to Washington. We understand Canada has its own right to its destiny, Richard Nixon told his advisors, and Canadian politician could survive without that ideology. The remark came at a moment when relatively easy days of Canada-US relations were a faded dream. Canadian nationalists were alarmed at rising level of American foreign direct investment in Canada's economy. Public opinion towards US, which was in thick ofthe Vietnam War, was similarly negative. Reflecting these sentiments, political scientist Stephen Clarkson published a collection of essays entitled An Independent Foreign Policy for Canada? The contributors - a range of academics former policymakers - reassessed traditional tenets of Canadian explored whether Ottawa had means to conduct a foreign policy that would be both independent from Washington a break from diplomacy that had guided bilateral relations since 1945. Clarkson called for a more robust autonomous approach to conduct of Canadian foreign relations. Forty years later, political scientists Brian Bow Patrick Lennox have assembled a new generation of scholars - all political scientists, save one - to revisit issues that inspired Clarkson's work. The new volume considers question of Canadian foreign policy in an era of unparalleled American power (xvi) .Bow's Lennox's introduction nicely describes context of Clarkson's collection posits that there are numerous parallels between 1968 2008. There are, however, some early factual errors. Did [m]ost Canadians really have no reservations about Canada's dependence on Britain in first half ofthe twentieth century (9)? Such a claim is ignores sentiments of majority of Quebeckers. also overlooks both small but prominent group of isolationists in Department of External Affairs, including O. D. Skelton, as well as nationalist sympathies of some prominent Liberals members of Cooperative Commonwealth Federation. Further, Gordon commission study on Canadian economy appeared in 1958, not 1968, contractual link was not with Europe but rather European Economic Community (9-10). These are important distinctions in a study of Canadian foreign policy. Lastly, claim that the current Conservative government of Stephen Harper seems to have moved away from Chretien-era focus on trade with China is an early indication that this work already risks becoming dated (10).The collection of 10 essays is divided into five thematic parts. In part one, lone historian, Adam Chapnick, provides a vital examination of evolving independence that sparked original volume. He is sharply persuasively critical of a debate that created a binary misleading analytical framework that gives too much attention to Canada's relationship with US. He bemoans fact that this paradigm-especially its simple focus on value of quiet meaning of Canadian foreign policy - has dominated discussion of Canadian foreign policy over last 40 years (36).Part two examines how Ottawa has managed relations with Washington. Brian Bow evaluates suggestion that Canadian foreign policy has shifted closer to that of US out of fear that individual high-level bilateral disputes may elicit American retaliation against an independent Canadian stance. It is striking how little solid [archival] evidence there is of any clearcut retaliation over last sixty years, Bow concludes (67). That said, he suggests that grudge linkages between presidents prime ministers have occasionally affected handling of disputes, citing tense relationship between Diefenbaker Kennedy (74). …

La multinationalisation des pétrolières canadiennes

Canadian foreign direct investment in the oil and gaz industry has been growing at a very rapid pace during the seventies and early eighties. Traditionnally oriented towards the United States, it is now flowring towards the United Kingdom and other North Sea Countries, the Mediterranean, Indonesia and Australia. Increasing oil prices and profits, mainly in international operations, explain the growth of many Canadian independent. These international firms are not already truly multinationals: they produce oil and/or gaz in two to four countries, but the extent of their exploration and development activities is leading them towards a more global activity. The article is organized into three sections. In the first section the patterns of ownership and control in the Canadian industry is shown, including the emergence of local companies and the "Canadianization" process of the seventies; in the second one, the multinational expansion of Canadian firms is analyzed using agregate data; in the final section the main results are summarized and some forecasts are made on the future evolution of Canada emerging oil multinationals.

Federalism and the Evolving Cross-Border Role of Provincial, State, and Municipal Governments

THE EVOLUTION OF A MODERN BILATERAL RELATIONSHIPIn his introduction to first American Assembly volume dealing with Canada-US relations, John Sloan Dickey emphasized that book aims at a better understanding of relations in time, place, and human affairs that add up to phrase each of us uses with such unconscious ease: 'the United States and Canada,' or vice versa.' Nevertheless, coverage of bilateral relationship in this excellent volume is dominated by decisions made and actions taken by representatives of national governments in Ottawa and Washington, DC. The second volume, which appeared two decades later, does occasionally go beyond respective national beltways, with Gordon Robertsoris chapter discussing how Canadian federalism, especially unfolding events in Quebec, might eventually affect crossborder ties.2 Other chapters deal with influence of economy, culture, and environment on Canada-US relations.Thus, second volume puts somewhat less emphasis on importance of Ottawa-Washington relationship, and this is not too surprising, because between publication of first book in 1964 and second in 1985, Robert Keohane, Joseph Nye, Jr., and others had begun to write about complex interdependence and growing networks of international ties which go far beyond relations between national governments. Indeed, Keohane and Nye highlighted Canada-US relations in 1977, labelling these ties quintessential model of complex interdependence, defined by the absence of force, lack of hierarchy among issues, and presence of multiple channels of contact between societies.' For Keohane and Nye, three types of cross-border interactions are prominent in contemporary world of international relations. The first is interstate interactions, typified by official exchanges between representatives of national governments. The second is transnational interactions which involve at least one nonstate actor such as a corporation, a labour union, or a church organization. The third is transgovernmental interactions which include at least one governmental entity or representative not linked directly to leadership of a national government. In this chapter, we will focus primarily on this latter category which was largely ignored in first two American Assembly volumes and which merited only one sentence in Keohane and Nye's own study of Canada-US relationship.DOCUMENTING MULTIPLE CHANNELS OF INTERACTIONCanada and United States share a 4,ooo-mile border and another 1,500mile border separating Alaska from British Columbia and Yukon. The evolving cross-border relationship, which affects 32 million Canadians and 295 million Americans, is as complex and diverse as any in world, evincing many of features of globalization emphasized by Keohane in following statement: Interdependence refers to a state of world, whereas globalization describes a trend of increasing transnational flows and increasingly thick networks of interdependence.4 The overall complexity in bilateral relationship is illustrated in figure 1.In economic terms, United States and Canada maintain largest bilateral trading relationship in world, with two-way trade in goods and services in range of US$1.2 billion per day, up over 150 percent since 1988, year before Canada-US free trade agreement (FTA) went into effect. US foreign direct investment in Canada, a type of investment which provides Americans with control over management of companies operating in Canada, surpassed $192 billion in 2003, with US-owned companies accounting for over 10 percent of Canada's gross domestic product (GDP) and providing 1.16 million jobs for Canadian workers.5 Canadian foreign direct investment in United States stood at $105 billion at end of 2003, with more than 470,000 Americans working for Canadian majority-owned non-bank enterprises. …

Foreign investment policies and capital flows in Canada: a sectoral analysis

This paper develops and estimates a statistical model of foreign investment flows in Canada in order to determine the degree to which Canadian foreign direct investment (FDI) policies affected these flows. Theoretical considerations suggest that host government policies directed at inward foreign investment (FDI) also influence outward direct investment (ODI), especially investment by affiliates of foreign-owned companies. Our study documents the empirical importance of this relationship with respect to specific host government initiatives. A distinguishing feature of the study is that we estimate the effects of Canadian policies at the sectoral level. Specifically, we focus on three sectors: manufacturing, finance services, and energy. We utilize time-series data over the period 1950–1995 to specify and estimate the three sector-specific models. In so doing, we are able to compare the effects of sector-specific policies with those of policies that applied to all sectors. To this end, we develop a policy framework that suggests that general policies are less likely to deter FDI flows than are sector-specific policies. We do in fact find that public policies have (to some degree) been influential in determining capital flows, but the effects are not uniform.

Canadian foreign direct investment in the United States by type: mergers and acquisitions, greenfield, real estate, joint ventures and investment increases

Introduction While the foreign direct investment (FDI) literature is rich with both theory and empirical study, it has been recognized that additional research concerning FDI by type would be desirable. This would allow for consideration of the properties inherent to mergers and acquisitions, greenfield investments, real estate purchases, joint ventures and investment increases. Most studies directed toward comparing the various strategies associated with international market entry have emphasized differences amongst exporting, licensing, various strategic alliances and FDI in general (and less so on the various sub-categories of FDI) (Buckley and Casson 1998). Tse et al. (1997) express similar sentiments regarding the need for more varied research in this area. The authors affirm that almost all `FDI by type' investigations have taken the perspective of direct investment from the United States or from Japan, and that most authors have taken a decidedly aspatial (and firm-specific) approach. Foreign direct investment in the United States is deemed to occur when a foreign investor controls at least 10 percent of the voting securities of an incorporated business entity or owns at least 10 percent of a real estate property (US Department of Commerce: International Trade Administration, Office of Trade and Economic Analysis 1995). It is assumed that a foreign direct investor's overall intention is to attain control over the subsidiary (and, thus, is enumerated apart from the more passive portfolio form of investment). Commonly, FDI is denoted by rive sub-groups: mergers and acquisitions (MA 1993) `eclectic theory of international production', the degree of correspondence between US areas of influence and Canadian direct investment by type is presented. It is believed that this study adds to the FDI literature by providing a more encompassing view of FDI by type and also, it is contended, that this investigation adds to the `Canada-specific' component of the FDI literature. While it is certainly true that a number of authors have advanced our understanding of direct investment from Canada (Litvak and Maule 1975; Rugman and McIlveen 1985; Harrington et al. 1986; Rugman 1987; MacPherson and McConnell 1992; Chow 1994; Rao et al. 1994; Knubley et al. 1996), this body of work remains considerably less developed than the literature and empirical analyses inherent to direct investment into Canada (as discussed by Meyer and Green 1996). A Selection of Studies that Compare FDI by Type There are many ways that the different categories of FDI can be contrasted. Yet, the most reoccurring approaches have been to explore how M&As, greenfield operations and/or joint ventures compare with regards to: subsidiary performance, technology and resource adoption, the handling of uncertainty (including cultural distance) and, to a lesser degree, accrued spatial patterns. Nitsch et al. (1996) analyzed the performance of Japanese-controlled subsidiaries in Western Europe and, based on the assessment of 173 managers polled in 1994, round that acquisitions had performance levels that were below that of joint ventures and, particularly, greenfield investments. …

A Subnational Analysis of Japanese Direct Investment in Canada

AbstractThis study examines longitudinal aspects of Japanese foreign direct investment in Canada. In looking at the longitudinal aspects, the focus was on a descriptive analysis of entry and exit rates and on an econometric analysis of the determinants of subsidiary survival and exit. In these analyses, we find that exit rates are related to subsidiary‐level variables such as business size, expatriate employment levels, equity‐ownership levels, and entry mode. The sector and region in which the investments are made is also related to subsidiary survival, with manufacturing‐sector subsidiaries located in Ontario being the least likely to exit. The results of our study suggest that region and industry interact, both to draw investment to a region and to influence the likeli‐hood of survival of foreign‐owned businesses. Further‐more, the focus on regional issues for Canada shows that even within a small open economy, subnational (interprovincial) variance can have important effects on the characteristics and performance of foreign direct investment.RésuméLa présente étude porte sur l'évolution des investissements directs japonais à l'étranger, réalisés au Canada. De façon plus précise, cette recherche s'intéresse, sur une base longitudinale, à l'analyse descriptive des taux d'entrée et de sortie ainsi qu'à l'analyse économétrique des facteurs expliquant la survie ou la sortie de filiales japonaises. A la lumière de ces analyses, il ressort que les taux de sortie sont influencés par certaines caractéristiques des filiales telles que la taille, la proportion d'expatriés, la part du capital‐action et le mode d'entrée. Le secteur et la région où l'investissement s'effectue influencent également les chances de survie d'une filiale; la probabilité la plus faible de quitter le pays appartiendrait aux filiales manufacturières situées en Ontario. Les résultats de l'étude suggèrent que la région et l'industrie interagissent de façon à attirer les investissements dans une région donnée et à influencer les chances de survie de compagnies appartenant à des intérěts étrangers. Ces résultats sur les disparités régionales du Canada suggèrent que, měme à l'intérieur d'une économie de marché restreinte, la variance sous‐nationale (ou interprovinciale) peut avoir d'importantes répercussions sur les caractéristiques et la performance des investissements directs à l'étranger.

Canadian Direct Investment in the United States: An Ohio Perspective

AbstractThis analysis focuses on the direct investment behaviour of small Canadian manufacturing firms in the heavily industrialized state of Ohio. Hypotheses were developed regarding the push and pull factors in foreign direct investment in Ohio. Two types of analyses were conducted: a survey of Canadian firms and a logit regression on financial and locational characteristics of a set of Canadian manufacturing firms. The results suggest that the leading factors affecting the probability that a Canadian firm will invest in Ohio are the nature of the industry, the proximity of the parent firm, and the size of the firm. The implications of NAFTA are also discussed.RésuméLa présente analyse met en relief la stratégie d'in‐vestissement direct des petites entreprises canadiennes dans l'Etat fortement industrialisé de l'Ohio. Des hypothéses ont été développées relativement aux fac‐teurs poussée‐aspiration (push‐pull) qui favorisent I'in‐vestissement direct étranger. Deux genres d'analyse ont été menés: un sondage auprès des entreprises canadiennes par le Centre des études canadiennes de la Bowling Green State University; et une régression logit sur les caractéristiques du financement et du lieu d'implantation d'un groupe de firmes canadiennes. Les résultats suggèrent que les facteurs principaux qui influent sur la probabilité d'un investissement canadien dans l'Ohio dépendent du type et de la taille de l'entreprise, et de la proximité de la maison mère. Cette étude se penche également sur les répercussions possible de l'Alena.

Canada and the Global Economy: The Geography of Structural and Technological Change

This impressive volume comprises contributions from twenty-three economic geographers examining the economic and spatial development of the Canadian economy. The stated task of the volume is 'to capture Canada's deeper and abiding economic characteristics, to assess the extent to which Canada is responsive to world-wide forces of change, and to identify problems inhibiting spatial and structural evolution of the economy' (p 6). The contributors explore four main themes, which provide coherence for the volume's five parts. Some themes are of more interest then others to students of international relations because they address the influence that such powerful global forces as advances in information technology and changes in the legal regulation of trade have on industrial organization and development in Canada. The papers provide a rich source of information about the domestic impact of globalization and privatization in a variety of industries and sectors. In some cases, they offer rather sobering evidence about the regional implications of deregulatory policies and about the loss of rational autonomy attending the internationalization of production and finance. Part One, 'The Open Economy,' discusses the impact that the openness of the Canadian economy has on patterns of trade and investment and on domestic, sectoral, and spacial development. There is much of interest here for students of international relations, particularly those interested in links between the local and global political economies. Glen Norcliffe analyses patterns of foreign trade in goods and services. He notes a 'technology gap' in Canadian trade, which he attributes to a lack of concern over the foreign acquisition of technological innovation and the consequent 'policy vacuum' (p 38) in Canadian government, and he makes a case for greater diversification of trading partners. Trevor Barnes examines the regional impact of openness, modifying Harold Innis's staples model of development with reference to Fordist and post-Fordist theories. In connecting trading patterns with production relations in the context of the economy of British Columbia, he convincingly illustrates 'a direct relationship between the type of trade in which Canada engages and its historic inability to become a fully industrialized nation' (p 50). Alan MacPherson focusses on shifts in Canadian direct investment abroad and foreign direct investment in Canada. Of note is the observation that the increasing popularity of 'investment by acquisition reflects an accelerating international trend toward industrial concentration, corporate integration, and oligopolist competition' and is accompanied by a 'progressive blurring of international political boundaries (p 81). Geoffrey Dobillas places the Canadian financial system in the global context of technological innovations in the instruments and methods of finance and the deregulation and integration of financial markets and concludes that the 'most obvious consequence for Canada of the internationalization of finance is a loss of domestic autonomy in choosing the direction for the finance and banking sector' (p 93). The next three parts develop the themes concerning the impact of regional variation in resource endowments and urbanization on the Canadian economy and the influence of technological change on Canadian development. 'The New Staple Economy' includes analyses of forest, mineral, energy, and agricultural resources. Roger Hayter addresses the technological challenge for the forest products industry, while Ian Wallace focusses on the restructuring of the mining and mineral-processing industries in response to global influences. …

Outward Canadian direct investment and place-specific attributes: an empirical analysis

As the activities of Canada-based multinational enterprises (MNEs) have fostered an impressive outflow of foreign direct investment (FDI) abroad, many empirical studies have been put forth to describe the characteristics and account for the reasons behind Canadian FDI. Yet, most of these Canada-based studies have relied on questionnaires (and surveyed only large MNEs) to fulfil data requirements and have given a less than complete view of Canadian MNE behaviour. A study that utilizes a larger data set (and is, therefore, not biased by company size or spatial area of consideration) is needed. To realize this goal, a sample of more than 4500 examples of Canadian FDI has been collected into a data set. From there, with the use of a regression analysis (and with considerable reliance on the resulting outliers), some of the determinants of Canadian MNE behaviour across the world and within the United States are uncovered. Spatially, the favourite target of Canadian outward FDI has been the United States and then the United Kingdom, but significant agglomerations of Canadian controlling capital can be found in many parts of the world (particularly in Western Europe, the Caribbean region, Australia, Brazil and in various Asian destinations). Canadian direct investment abroad is most attracted to: large foreign markets, countries that are well-established trading partners with Canada, and to favourable place-specific labour and aesthetics conditions. Evidence also suggests that countries with strong historical ties to Canada and a positive political attitude toward FDI are likely to receive a disproportionate amount of Canadian FDI as well. Also, distance from the Canadian border may bias some direct investment decisions into the U.S.