Dunning’s Eclectic Paradigm
Introduction
Dunning's eclectic paradigm is a model developed by John H. Dunning. The aim of the model is to explain the OLI-framework. The framework by Dunning serves as a guide for empirical examination of determinants of FDI. The framework offers a ground to research on factors affecting the development of multinational companies concerning expansion after engaging in foreign production and other expansion plans in the foreign countries. According to Dunning (2001), the assumption underlying the eclectic paradigm by Dunning is that three factors determine the FDI or specifically the return to FDI. The first factor is represented by ‘O'. ...