The Role of FDI in A Digital Economy

The digital economy has a deep impact on the landscape of international trade. It has been a major reason behind the emergence of new multinational enterprises (MNEs) and industries. International investment is experiencing a decent retrieval with a forecast for coming years are warily positive. Increasing financial growth anticipation throughout major regions, a continuation of progress in trade and retrieval of business profitability are supporting a slight increase in foreign direct investment (FDI). The digital economy has been transforming into one of the most important aspects of the international economy. It has been transforming the way of commerce, and it has significant implications for FDI. The conventional drive behind FDI is being challenged by digital technologies and open a new way for a new set of contributing factors. For digital MNEs, this has turned into a change of motivation towards global investment from substantial market driven and resource-driven FDI to knowledge-seeking, financial and light FDI. There is a limited number of studies that are directed towards the implications of digital policies and digital economy for international investment and investment policy. This research paper intends to contribute towards a better understanding of the role of FDI in a digital economy