SouthViews No. 124, 21 January 2016
FDI – myths and realities
By Yılmaz Akyüz
Foreign direct investment (FDI) is perhaps one of the most ambiguous and the least understood concepts in international economics. Common debate on FDI is confounded by several myths regarding its nature and impact on capital accumulation, technological progress, industrialization and growth in emerging and developing economies. It is often portrayed as a long term, stable, cross-border flow of capital that adds to productive capacity, helps meet balance-of-payments shortfalls, transfers technology and management skills, and links domestic firms with wider global markets.
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This article was tagged: Capital Accumulation, Capital Flows, Foreign Direct Investment (FDI), Industrialization, International Economic System, Technological Progress, Technology Transfer