Unpacking the Determinants of Foreign Direct Investment: A Systematic Literature Review (2008–2024) and Future Research Agenda

Purpose : This study presents a comprehensive systematic literature review about the factors influencing foreign direct investment (FDI) inflows and outflows. Method : We synthesize and analyze 294 empirical studies from 2008 to 2024 using a framework-based review of the Antecedent — Decision — Outcome (ADO) and Theory — Context — Method (TCM) model. Findings : The findings are presented, including theories, context, and methodologies adopted in the current literature. We also reveal factors influencing FDI and the impacts of FDI investigated in the literature. Originality: A major novelty of this review lies in its development of a categorization matrix that distinguishes between push versus pull factors and institutional versus non-institutional drivers. This matrix provides a bidirectional and multi-layered perspective on how FDI determinants operate across home and host countries. Additionally, we propose a conceptual model describing FDI inflow and outflow patterns. This offers a holistic picture of the affecting mechanisms and impacts on FDI. Contribution : The study offers a refined research agenda with research questions and directions for future studies. This review also contributes an actionable foundation for advancing FDI research and informing policymaking.