Abstract:
The choice of undertaking a Foreign Direct Investment in a country rather than in another one dependes on several aspects (economic, political, social and geographical). There is no a general study on the determinants which can be taken in consideration for attracting inflows of FDI. However, different studies and surveys are carried out on this matter in all countries in order to discover if particular determinants need to be promoted more than others. Therefore, this work provides an experimental study on the determinants of Foreign Direct Investment in Malta. On the one hand, it intends to analyse the inward and outward Foreign Direct Investment flows in Malta during recent years, whilst on the other hand, it attempts to establish in which way, and on what terms,the inward Foreign Direct Investment flows have grown in comparison with the outward ones; for this reason, this study has paid attention to the main points of attraction in the country which attract the most inward investment.
Hence, the aim of this research work is to assess the quality of the determinants that motivate foreign investors in Malta and to monitor whether some of these determinants attract more investment than others.
In order to achieve this aim, it is intended to analyse the point of view of the investor who has decided to invest in Malta rather than in other EU countries; it is intended to discover which valid determinants in particular caused the person to invest in Malta, what the prospects are for the future of their investments and which strengths and weaknesses should be taken into consideration to promote future foreign direct investment into Malta.
As far as the methodology is concerned, the present study was carried out by means of questionnaires and a formal semi-structured interviews.
Starting from this premise, in order to explore this topic, the work is divided into four chapters.
The first chapter deals with the distinct historical stages of Maltese economic development from the colonial period to recent years, after a brief overview of Malta.
The second chapter, which focuses on the theoretical study of foreign direct investment, concentrates on inward and outward foreign direct investment flows in Malta.
The third chapter is concerned with the methodology used for this study and the findings of the research survey.
At last, the fourth and final chapter outlines the conclusions of this work, offering attributions for further analyses in the future.
