The Foreign Direct Investment - Investment Environment Relationship

This paper aims to identify the relationship between foreign direct investment and the investment environment. The major investment environment variables are highlighted, the strength and correlation between them. The scientific approach highlights the main motivations of international companies to invest in different countries’ economies, other than the origin ones, as well as the elements specific to the investment environment found in the acceptation of various international organisations and institutions. The model build is based on a multiple regression function and four variables that characterise the investment environment. The regression equation obtained, as well as the statistical analysis highlight how foreign direct investments are influenced by the model’s variables.