Volume : VIII, Issue : VI, June - 2019

Emerging role of Foreign Direct Investments in the Developing Countries

Rachna Chanyal

Abstract :

This paper introduces the conceptual developments with regard to foreign direct investment and multinational enterprises in and from developing countries. The paper contains the detailed overview of the mechanisms of FDI in the developing countries, with recent policy analysis and economic developments like growth and capital flows from some of these countries. Foreign direct investment may be viewed to internalize trade costs and externalities from firm’s specific assets. The ownership advantage for foreign direct investments from developing countries originates from technology and management expertise that are suitable or adaptable to local conditions in other developing countries. However the higher productivity of FDI holds only when the host country has a minimum threshold stock of human capital. This paper builds a multi-country model that explains the decision of heterogeneous firms to serve foreign markets through foreign direct investments.

Keywords :

Article: Download PDF    DOI : https://www.doi.org/10.36106/gjra  

Cite This Article:

EMERGING ROLE OF FOREIGN DIRECT INVESTMENTS IN THE DEVELOPING COUNTRIES , Rachna chanyal GLOBAL JOURNAL FOR RESEARCH ANALYSIS : Volume-8 | Issue-6 | June-2019

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