Abstract:
This study assessed the attributes of economic diplomacy in determining foreign direct
investment. The study was guided by liberalism theory, and a cross-sectional research design
was employed. Similarly, a mixed research approach was used, and stratified and purposive
sampling strategies were employed to obtain a sample size of 127 respondents. Questionnaires
and interviews used to collect data from the respondents. Data were analyzed using descriptive,
inferential, and content analysis. The study's first research objective explores the pivotal role of
institutional factors, including economic policies, regulatory frameworks, and governance
structures, in influencing foreign investors' decisions. Notably, respondents acknowledge the
significance of institutional factors in economic diplomacy, as reflected in a mean score of 4.53,
with a consensus on their importance. The second research objective focuses on the role of
diplomats as crucial intermediaries in the economic diplomacy landscape. While respondents
overwhelmingly perceive diplomats as influential in attracting FDI, the diverse responses
regarding specific aspects of diplomats' roles highlight their multifaceted contributions. The third
research objective highlights the vital role of infrastructural factors in FDI attraction.
Respondents collectively emphasize the significance of infrastructure in economic diplomacy,
with a mean score of 4.47, although the specific importance of road networks and reliable power
supply elicits varying opinions. The correlation analysis demonstrates the interdependence of
institutional factors, diplomats, infrastructural elements, and economic diplomacy for FDI,
showcasing their intertwined nature. The regression model underscores the effectiveness in
explaining FDI attraction, with an R Square of 0.883, implying that roughly 88.3% of the variation
in Economic diplomacy for FDI is accounted for by the predictors. The ANOVA results confirm
the model's overall statistical significance, strengthening confidence in its predictive capabilities.
The Coefficients table highlights the positive and statistically significant relationships between
Institutional factors, Infrastructural factors, and roles of diplomats, emphasizing their pivotal
roles in shaping economic diplomacy strategies for attracting FDI. In conclusion, this study's
findings emphasize the multifaceted nature of economic diplomacy in attracting FDI, with
institutions, diplomats, and infrastructure playing critical roles. The research offers valuable
insights and recommends strengthening institutional frameworks, empowering diplomats, and
prioritizing infrastructure development to enhance FDI attraction.