Factors encouraging foreign direct investment (FDI) in the wind and solar energy sector in an emerging country

Tareq Mahbub; Mohammad Faisal Ahammad; Shlomo Y. Tarba; S. M.Yusuf Mallick

doi:10.1016/j.esr.2022.100865

Factors encouraging foreign direct investment (FDI) in the wind and solar energy sector in an emerging country

Tareq Mahbub, Mohammad Faisal Ahammad, Shlomo Y. Tarba, S. M.Yusuf Mallick

Research output: Contribution to journal › Article › peer-review

30 Scopus citations

Abstract

This study bridges the current research gap by exploring the determinants of foreign direct investment (FDI) in the renewable energy sector in Bangladesh through the OLI and TCE theories. Based on semi-structured interviews with 13 experts, it investigates the determinants of firms' decision-making processes in the UK, Singapore, USA, Denmark, Thailand, China, and South Korea, conducting FDI in the renewable energy sector in Bangladesh. The results show that the institutional environment assumes the highest weight over macroeconomic and natural conditions for attracting FDI in Bangladesh's wind and solar energy projects. In the macro-economy, economic growth and access to local finance are important in attracting FDI. Contrarily, land availability assumes the highest importance for attracting FDI in the natural condition dimension.

Original language	English
Article number	100865
Journal	Energy Strategy Reviews
Volume	41
DOIs	https://doi.org/10.1016/j.esr.2022.100865
State	Published - 1 May 2022
Externally published	Yes

Keywords

Bangladesh
Emerging country
FDI
Investment decision
Renewable energy
Solar
wind

ASJC Scopus subject areas

Energy (miscellaneous)

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1016/j.esr.2022.100865

Cite this

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title = "Factors encouraging foreign direct investment (FDI) in the wind and solar energy sector in an emerging country",

abstract = "This study bridges the current research gap by exploring the determinants of foreign direct investment (FDI) in the renewable energy sector in Bangladesh through the OLI and TCE theories. Based on semi-structured interviews with 13 experts, it investigates the determinants of firms' decision-making processes in the UK, Singapore, USA, Denmark, Thailand, China, and South Korea, conducting FDI in the renewable energy sector in Bangladesh. The results show that the institutional environment assumes the highest weight over macroeconomic and natural conditions for attracting FDI in Bangladesh's wind and solar energy projects. In the macro-economy, economic growth and access to local finance are important in attracting FDI. Contrarily, land availability assumes the highest importance for attracting FDI in the natural condition dimension.",

keywords = "Bangladesh, Emerging country, FDI, Investment decision, Renewable energy, Solar, wind",

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T1 - Factors encouraging foreign direct investment (FDI) in the wind and solar energy sector in an emerging country

AU - Mahbub, Tareq

AU - Ahammad, Mohammad Faisal

AU - Tarba, Shlomo Y.

AU - Mallick, S. M.Yusuf

PY - 2022/5/1

Y1 - 2022/5/1

N2 - This study bridges the current research gap by exploring the determinants of foreign direct investment (FDI) in the renewable energy sector in Bangladesh through the OLI and TCE theories. Based on semi-structured interviews with 13 experts, it investigates the determinants of firms' decision-making processes in the UK, Singapore, USA, Denmark, Thailand, China, and South Korea, conducting FDI in the renewable energy sector in Bangladesh. The results show that the institutional environment assumes the highest weight over macroeconomic and natural conditions for attracting FDI in Bangladesh's wind and solar energy projects. In the macro-economy, economic growth and access to local finance are important in attracting FDI. Contrarily, land availability assumes the highest importance for attracting FDI in the natural condition dimension.

AB - This study bridges the current research gap by exploring the determinants of foreign direct investment (FDI) in the renewable energy sector in Bangladesh through the OLI and TCE theories. Based on semi-structured interviews with 13 experts, it investigates the determinants of firms' decision-making processes in the UK, Singapore, USA, Denmark, Thailand, China, and South Korea, conducting FDI in the renewable energy sector in Bangladesh. The results show that the institutional environment assumes the highest weight over macroeconomic and natural conditions for attracting FDI in Bangladesh's wind and solar energy projects. In the macro-economy, economic growth and access to local finance are important in attracting FDI. Contrarily, land availability assumes the highest importance for attracting FDI in the natural condition dimension.

KW - Bangladesh

KW - Emerging country

KW - FDI

KW - Investment decision

KW - Renewable energy

KW - Solar

KW - wind

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JO - Energy Strategy Reviews

JF - Energy Strategy Reviews

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Factors encouraging foreign direct investment (FDI) in the wind and solar energy sector in an emerging country

Abstract

Keywords

ASJC Scopus subject areas

UN SDGs

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