IDENTIFYING TARGET SEGMENTS FOR FOREIGN DIRECT INVESTMENT (FDI) ATTRACTION: AN APPLICATION OF CONJOINT METHODOLOGY

This paper illustrates how conjoint methodology can be used by recipient countries to segment the donor market for foreign direct investment (FDI), thereby enhancing the effectiveness of their FDI attraction efforts. The study results indicate that FDI donors can be clustered into segments based on the FDI benefits they seek. The article concludes with normative and practical implications of the methodology for investment policy makers in recipient countries.