1 / 20

ASSESSMENT OF FDI ATTRACTIVENESS: AN ANALYTIC HIERARCHY PROCESS (AHP) APPROACH

ASSESSMENT OF FDI ATTRACTIVENESS: AN ANALYTIC HIERARCHY PROCESS (AHP) APPROACH. SERCIN SAHIN Yıldız Technical University, Department of Economics sercinsahin@hotmail.com ÖZGÜR ŞENER İstanbul Technical University , Department of Industrial Engineering thesener@yahoo.com.

dobry
Download Presentation

ASSESSMENT OF FDI ATTRACTIVENESS: AN ANALYTIC HIERARCHY PROCESS (AHP) APPROACH

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. ASSESSMENT OF FDI ATTRACTIVENESS:AN ANALYTIC HIERARCHY PROCESS (AHP) APPROACH SERCIN SAHIN Yıldız Technical University, Department of Economics sercinsahin@hotmail.com ÖZGÜR ŞENER İstanbul Technical University, Department of Industrial Engineering thesener@yahoo.com

  2. Overview of the presentation • Overview of Foreign Direct Investment • Data: UNCTAD FDI Variables • Method: Analytic Hierarchy Process (AHP) • Results • Conclusion • Further Suggestions

  3. 2.What is Foreign Direct Investment? • Green-field investment • Mergers and acquisition

  4. 2.What is Foreign Direct Investment? • Capital stock • Know-how • Technology

  5. 2.What is Foreign Direct Investment? • Benefits for Host Country • Increase in Employment • Increase in Exports • Increase in Government Revenues • Trigger Local Investment (suppliers, distribution channels) • Technology Transfer • Improvement of Management and Labor Skills • Increase in International Competitiveness of Local Firms

  6. 3.Data: UNCTAD FDI Variables UNCTAD United Nations Conference on Trade and Development

  7. 3.Data: UNCTAD FDI Variables • The UNCTAD Inward FDI Performance Index INDi= The Inward FDI Performance Index of the “i”th country FDIi= FDI inflows in the “i”th country FDIw = World FDI inflows GDPi = GDP in the “i”th country GDPw = World GDP.

  8. 3.Data: UNCTAD FDI Variables The UNCTAD Inward FDI Potential Index is the unweighted average of the scores on twelve variables (Independent Variables) for each country.

  9. 4.Method: Analytic Hierarchy Process (AHP) • A multi criteria decision making method • Designed by Saaty(1980).

  10. 4.Method: Analytic Hierarchy Process (AHP)

  11. 4.Method: Analytic Hierarchy Process (AHP) Pair-wise comparisons between variables

  12. Correlations between “UNCTAD Inward FDI Performance Index” and “FDI determinants that are used to calculate “UNCTAD FDI Potential Index (Criterion)

  13. Pair-wise comparison matrix of determinants

  14. 4.Method: Analytic Hierarchy Process (AHP) Eigenvalue vector as the weights of the determinants

  15. 5.Conclusions • In this study it is not attempted to define what are the true determinants of FDI. • But rather tried to weight the determinants which are used to compute UNCTAD’s FDI Inward Potential Index to make the analysis more reliable • And AHP may be an appropriate technique for weighting the determinants.

  16. 6.Further Suggestions • Proxies which UNCTAD uses may not indicate the real FDI potential of the countries. Therefore, some other variables should be added to make the analysis more accurate: • Tax rates • Labor and energy costs, • Incentives • Property rights • Corruption, etc.

  17. GRAZIE

More Related