It is for various reasons that positive economic growth effects of foreign direct investment (FDI) in developing countries cannot be taken for granted. First, the mobilisation of domestic resources remains by far more important than attracting FDI for financing investment and stimulating growth....

It is widely believed that the determinants of foreign direct investment have changed fundamentally in the process of globalization. We apply correlation and regression analyses in order to test this proposition for German direct investments in developing and transition economies. Indications...