The basic objective of this paper is to develop a simultaneous equation system to examine the effect of foreign capital on growth of a sample of nine Asian developing countries. The major finding of the paper is that foreign capital flows have made a positive contribution to the growth of Asian...

The authors examine trends in foreign capital resources in the Asian developing countries and assess their contribution to economic growth and impact on economic efficiency. They also consider measures that might be adopted by the countries concerned to sustain inflows of market-oriented private...