Foreign direct investment in developing countries : patterns, policies, and prospects

This study provides a summary of patterns, policies, and prospects concerning the foreign direct investment (FDI) in developing countries. The focus of the study is on host country policies, but the policies of home governments and international institutions are also analyzed. The emphasis of the study is on the factors that affect the patterns and trends of FDI in developing countries. Implicit to the study is the theme that FDI can make significant contributions to the long-term development process and that policy reforms that contribute to greater FDI are consequently desirable. The analysis of FDI presented here is based in substantial part on the findings of 11 country studies. The author found that the public policy environment for FDI has improved in recent years. There is more appreciation of FDI's contributions (such as transfer of technology and managerial skills, export market development, stimulation of local entrepreneurship, competition and innovation) and greater appreciation of the role of the private sector and private investment in development. The study concludes with a projection of the prospects for FDI flows to developing countries.