We examine the importance of various economic and social factors on the flow of foreign direct investment (FDI) into Canada between 1980 and 1994. We find that international trade, home country GDP and cultural distance are significant factors that in...
We examine the importance of various economic and social factors on the flow of foreign direct investment (FDI) into Canada between 1980 and 1994. We find that international trade, home country GDP and cultural distance are significant factors that influence the FDI flow into Canada. The per capita GDP, relative cost of funds, rate of return, exchange rates, geographic distance and the implementation of the free trade agreement show no significant impact on the flow of FDI into Canada. The regressions have much more explanatory power when the United States FDI is included in the sample.