Research Information System
INTERNATIONAL ECONOMICS AND ECONOMIC POLICY, vol.23, no.2, 2026 (ESCI, Scopus)
This study investigates the global drivers of foreign direct investment (FDI) inflows to 23 emerging market economies (EMEs) over 22 years, from 2001 to 2022. By combining global and country-specific data, the analysis uses the push-pull framework of capital flows to incorporate global push factors and country-specific pull factors into a comprehensive empirical dynamic panel model. The results show that FDI inflows to EMEs are significantly affected by global financial risk and economic uncertainty, with higher levels of both leading to decreased FDI inflows. The study also emphasizes the critical role of country-specific risk, as reflected in sovereign credit ratings, in mitigating the negative impacts of global risk. EMEs with higher credit ratings demonstrate greater resilience to global risk. These insights highlight the importance of macroeconomic and institutional quality for EMEs to attract and sustain FDI, enhance its benefits, and reduce risks-ultimately supporting economic growth, job creation, and sustainable development.