Investors prioritize political stability and favorable regulations in developing countries.
The article discusses a survey of multinational corporations with subsidiaries in developing countries. It explores how these corporations make decisions throughout the investment cycle, from attracting investments to exiting the market. The study, based on interviews with 754 managers, shows that political stability and a favorable business environment are key factors influencing investment decisions in developing countries. Investors are attracted to predictable, transparent, and efficient government functions. The research also suggests that investors vary in their perceptions depending on their motivations and scale, with corporations investing in efficiency being more selective and smaller corporations being more sensitive.