Determinants of Foreign Direct Investment in Netherland: New Evidence through ARDL Approach

Abstract

This study analyzes the effect of gross domestic product, inflation and natural resource rent on foreign direct investment in the Netherland. Our study applies the Autoregressive distributed lag model for the period 1980 to 2018. The empirical results show gross domestic product and natural resource rent positively affected foreign direct investment while inflation affected negatively in both the short-run and long run. This study recommends the government officials and policymakers formulate policies to promote foreign direct investment for the development of the economy of the Netherland