Foreign Direct Investment (FDI) is increasingly pivotal for policymakers and investors, significantly influencing economies through capital inflows, production methods, and wealth distribution. Institutional arrangements are crucial for attracting FDI, with the political environment playing a key role. Recent studies suggest that enhancing institutional quality positively impacts FDI attraction, yet research linking FDI to institutional constraints remains limited due to data availability. This study reviews theories on FDI determinants, exploring traditional and institutional factors. It...