Attracting Foreign Direct Investment through Advertising: A Comparison of Developed and Developing Countries

December 20, 2012


R.T. Wilson and D.W. Baack, (2012).  Journal of International Marketing, 20(2), 96-115.

Abstract

Countries compete intensely for foreign direct investment (FDI) and perform a wide range of activities to attract it, but research on FDI promotion often overlooks the effects of advertising. The authors used Dunning’s FDI location advantages framework to shed more light on FDI advertising and how advertising content varies by country income. Also identified were the five factors represented in FDI advertising:  knowledge resources, market attractiveness, economic governance, infrastructure, and natural resources. The findings suggest that high-income countries tend to focus on knowledge resources, while lower-middle-income countries focus on economic governance. Upper-middle-income countries tap into both knowledge resources and economic governance while also promoting the attractiveness of their market.