Journal Press India^®

Author Details ( * ) denotes Corresponding author

Foreign Direct Investment (FDI) plays a critical role in the economic development of emerging economies by fostering capital inflow, technological advancement, and job creation. While previous researches have largely focused on macroeconomic determinants and firm-level perspectives, therefore, this study aims to explore the perception of academicians regarding the key factors influencing FDI inflows so as to align policies with long term development framework. On analysing the responses using exploratory factor analysis, six key underlying constructs were uncovered: potential benefits, potential risks, potential social impact, potential economic impact, potential environmental impact, and potential to attract FDI. These latent factors reflect a comprehensive and multidimensional understanding of FDI that extends beyond what is typically captured through purely economic indicators. The findings offer valuable managerial implications, suggesting that FDI policies and strategies should be evaluated not only on economic grounds but also through their broader societal, environmental, and risk-related dimensions.

Keywords

Foreign direct investment; Macro-economic determinants; Exploratory factor analysis

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