DETERMINANTS OF TAIWAN DIRECT FOREIGN-INVESTMENT - THE CASE OF A NEWLY INDUSTRIALIZING COUNTRY

This paper shows that direct foreign investment (DFI) is motivated by different factors under different macroeconomic conditions. The microeconomic determinants of DFI vary with firm size, although on average, large firms are more inclined to make DFI than small firms. The only common factor that drives both large and small firms to venture abroad is the successful export experience prior to DFI.