Theoretical Evolution and Framework

This chapter uses time to systematically determine the development process and practical characteristics of foreign direct investment theory. In the context of economic globalization, outward foreign direct investment (OFDI) is an important way for an economy to integrate into economic globalization. Since the 1950s, the theoretical development of foreign direct investment and the internationalization of multinational corporations has been divided into three stages, namely, from the beginning of the twentieth century to the end of the 1950s, from the early 1960s to the late 1970s, and from the early 1980s to the present. The increase in outward investment from emerging economies, as represented by China, has accelerated the evolution of related theories and differs from traditional foreign investment theory.