Foreign Direct Investment Analysis

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Abstract During the last three decades, developing countries have made huge success in opening up their domestic markets to international trade and foreign investments. Therefore, the policy of attracting foreign investment has become an integral part of the economic policy of many countries, with the help of which seek to achieve economic growth. A flow of foreign capital is a source of competitiveness for both foreign investors and for the economies receiving investments. The value of foreign direct investment (FDI) to the economy in all countries of the world, especially in developing countries is increasing dramatically due to the need for structural and technological modernization of its transition to a post-industrial stage as well as…show more content…
How can developing countries to improve their investment climate and investment attractiveness? 2. How can we improve the flow of direct foreign investment in developing countries? 3. What advantages and disadvantages have FDI for the host state? Statement Ways to increase the investment attractiveness of developing countries contributes to promote the effective flow of foreign direct investment. Literature review There are a lot of articles dedicated to the selected topic. All previous studies based on the empirical data. There are case studies, which are often very informative and include a wealth of valuable information but because they pertain to particular FDI projects or specific countries, they cannot be easily generalized. There is research focus on firm level panel data, which examines whether the productivity of local firms is correlated with the extent of foreign presence in their sector. Foreign direct investment (FDI) and trade are often seen as important catalysts for economic growth in the developing counties. FDI is an important vehicle of technology transfer from developed countries to developing countries (Shiva S.Makki, Agapi Somwaru 2004). Furthermore, interest in the determinants of foreign direct investment in developing countries has been growing, as FDI is considered the most stable component of capital flows to developing countries. Not surprisingly, thus, a number of authors have also studied the link between institutions and FDI (Agn`es B´enassy-Qu´er´,…show more content…
Using a dataset on private participation in infrastructure projects in developing countries for the period 1990 to 2002 recently made available by the World Bank, they constructed an econometric model that was used to estimate the determinants of FDI in infrastructure. The main implication is the need for supporting capacity creation and institutional strengthening for reliable and independent regulation in developing countries. Method Chapter All authors referenced empirical database and quantitative analysis. Based on the empirical patterns of foreign direct investment may their theoretical reflection. The value of FDI in the process of the present stage of development of the world economy, the constant change of the essential characteristics of FDI and the presence of problems in the practice of FDI determined the existence of multiple theories in the economic literature. The main subject in this issue became developing countries. Results and Discussion

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