Navigating Socio-Economic Forces: Understanding FDI Patterns in OECD Economies

Abstract

This study investigates the FDI patterns’ ecosystem within the OECD regions.  The goal is to understand the multifaceted interaction of socio-economic mechanisms driving such patterns. Using a quantitative survey that incorporates patterns of the past and dynamics of the present, the research paper discusses the role that FDI flows in OECD countries have played throughout history. The way study employs OECD data, national data, as well as relevant international institutions such as the UNCTAD and the World Bank is the methodological framework. The analysis of both qualitative and quantitative data underpins the study through the methodology which pays particular attention to the correlation analysis, linear regression, and multiple regression within its framework. The research paper was based on a sample of 38 economically diverse OECD member states and looks into what factors promote foreign direct investment inflows and outflows, and what these could be, for instance, the economic size, level of industrialization, and how the trade is shared across regions. Besides, the study also points out some areas that would be worthy of adding to the list of questions to explore, for example, digital transformation, its impact on the trends of FDI, and the significance of FDI in regional economic integration. These results point to the fact that study should pay more attention to emerging socio-economic conditions and research have to adapt them when designing the policies and future strategies within the framework of international economic relations.