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Foreign Direct Investment in Less Developed Countries: Impact on Home Countries

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  • Lawrence G Franko

    (Center d'ètudes industrielles (CEI))

Abstract

In the past, governments in advanced countries have generally considered that direct foreign investment (DFI) in less developed countries (LDCs) had beneficial, or at least neutral, effects on their own developed national economies. This view has recently come under attack from advanced-country unions concerned with “job loss”, businessmen concerned with competition from LDCs, and government officials concerned with relative declines in technological strengths.This paper argues that DFI in LDCs has been much exaggerated as a cause of what are undeniable, deep-seated, structural problems in several advanced countries. It concludes with some policy options for adaptive, as opposed to restrictive or protectionist, solutions to the advanced countries' problems.© 1978 JIBS. Journal of International Business Studies (1978) 9, 55–65

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  • Lawrence G Franko, 1978. "Foreign Direct Investment in Less Developed Countries: Impact on Home Countries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 9(3), pages 55-64, September.
    • Handle: RePEc:pal:jintbs:v:9:y:1978:i:3:p:55-64
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