FDI in the Third World: The impact on growth and human development.

This thesis theoretically and empirically analyzes the effects of Foreign Direct Investment on Third World countries. The competing theories of the impact of FDI on developing countries are examined. The contradictory results of former econometric tests and empirical surveys measuring the impact of FDI on growth are compared and contrasted. A human development accounting model is employed as a new approach to study the effects of FDI on social indicators. Finally the resulting policy implications are discussed.