A Critique of the Meta-theoretical Explanations and Analyses of the Pre-conditions for the Stimulation and Attraction of Foreign Direct Investments

Abstract

Is it correct to assert that Foreign Direct Investments (FDI) stimulation and attraction are based on certain preconditions? To what extent should the preconditions be allowed to determine the content, character and method of studying and analysing FDI? Should research efforts be focused on these preconditions? Are the preconditions the necessary determinants of FDI stimulation and attraction? What are these preconditions, and to what extent are they fundamental and critical to the stimulation and attraction of FDI? Do the preconditions only exist in an economy? Do they exist in the polity as well? How can their existence and totality be explained, analysed and interpreted? To what extent have existing efforts been able to accurately explain, analyse and interpret these preconditions? What conclusions that can be drawn from these existing efforts and initiatives? Finally, what are the implications for theory construction and formulation? Approached from the angle of critique as a method of social inquiry, the article interrogates these efforts and initiatives to reveal their bogus intellectual claims and logical inconsistencies. The methodology of research is rooted in the very eclectic sources in which these explanations and analyses are contained. The overall objective is to determine the extent to which these explanations and analyses are able to sufficiently account for, and capture the critical forces, processes and factors that tend to shape the movement of capital globally. The article concludes that the existing initiatives and efforts still remain inadequate in helping to concretely address how well the assumed preconditions are indeed the needed prerequisites for FDI attraction and stimulation.

Keywords: Meta-theoretical explanations and analyses, Foreign Direct Investments, Foreign Direct Investments Preconditions