The role of foreign direct investment (FDI) in development and growth in OIC member countries

Over the past two decades, foreign direct investment (FDI) has been sought by most, if not all, developing countries as a means of complementing the level of domestic investment, as well as securing economy-wide efficiency gains through the transfer of appropriate technology, management knowledge, access to foreign markets, increasing employment opportunities, and improving standards of living. Like other developing countries, the OIC member countries were also seeking to enhance the inflow of FDI to their economies. However, in most of these countries matters have not developed so well. Indeed, up to now, the OIC countries, as a substantial group of the world developing countries, have attracted a small share of the total FDI flowing to developing countries. The purpose of this paper is to shed light on the role of FDI in development and growth in OIC member countries and the challenges facing these countries in attracing FDI that is consistent with their overall economic development strategy. (J Eco Coop Isl Count/DÜI)