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Foreign direct investment in developing countries : patterns, policies, and prospects

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  • Brewer, Thomas L.

Abstract

This study provides a summary of patterns, policies, and prospects concerning the foreign direct investment (FDI) in developing countries. The focus of the study is on host country policies, but the policies of home governments and international institutions are also analyzed. The emphasis of the study is on the factors that affect the patterns and trends of FDI in developing countries. Implicit to the study is the theme that FDI can make significant contributions to the long-term development process and that policy reforms that contribute to greater FDI are consequently desirable. The analysis of FDI presented here is based in substantial part on the findings of 11 country studies. The author found that the public policy environment for FDI has improved in recent years. There is more appreciation of FDI's contributions (such as transfer of technology and managerial skills, export market development, stimulation of local entrepreneurship, competition and innovation) and greater appreciation of the role of the private sector and private investment in development. The study concludes with a projection of the prospects for FDI flows to developing countries.

Suggested Citation

  • Brewer, Thomas L., 1991. "Foreign direct investment in developing countries : patterns, policies, and prospects," Policy Research Working Paper Series 712, The World Bank.
    • Handle: RePEc:wbk:wbrwps:712
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    References listed on IDEAS

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    1. Franklin R Root & Ahmed A Ahmed, 1978. "The influence of policy instruments on manufacturing Direct Foreign investment in developing countries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 9(3), pages 81-94, September.
    2. Peter J. Buckley & Mark Casson, 1991. "The Future of the Multinational Enterprise," Palgrave Macmillan Books, Palgrave Macmillan, edition 0, number 978-1-349-21204-0, September.
    3. Yu, Chwo-Ming, 1987. "A reconsideration of measures of instability," Journal of Comparative Economics, Elsevier, vol. 11(1), pages 116-119, March.
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    Cited by:

    1. Tatoglu, Ekrem & Glaister, Keith W., 1998. "Performance of international joint ventures in Turkey: perspectives of Western firms and Turkish firms," International Business Review, Elsevier, vol. 7(6), pages 635-656, November.
    2. Samir SAIDI, 2016. "Impact of road transport on foreign direct investment and economic growth: Empirical evidence from simultaneous equations model," E3 Journal of Business Management and Economics., E3 Journals, vol. 7(2), pages 064-071.
    3. François Joseph Cabral, 2009. "Flux d’aides et d’investissements directs étrangers en provenance de l’union Européenne et croissance économique dans les grands pays de la zone franc," Cahiers de recherche 09-07, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    4. Nesrine Dardouri & Abdelkader Aguir & Ramzi Farhani & Mounir Smida, 2023. "Revisiting the Determinants of Investment- The Case of Tunisia," Post-Print hal-04101430, HAL.
    5. Aldaba, Rafaelita M., 1994. "Foreign Direct Investment in the Philippines: A Reassessment," Research Paper Series RPS 1994-10, Philippine Institute for Development Studies.
    6. Kodjo N’Souvi & Chen Sun & Badoubatoba Mathieu DISSANI & Folly Dovénam YOVODEVI, 2021. "Impact of Chinese Foreign Direct Investment on the growth of West African Economic and Monetary Union (WAEMU) countries," Journal of Scientific Reports, IJSAB International, vol. 3(1), pages 9-25.
    7. Choi, Yongjae & Esfahani, Hadi Salehi, 1998. "Direct foreign investment and expropriation incentives: A mitigating role for match-specific capital," The Quarterly Review of Economics and Finance, Elsevier, vol. 38(1), pages 47-59.
    8. Saief Eddine, Ayouni & Fakhri, Issaoui & Salem, Brahim, 2014. "Financial liberalization, Foreign Direct investment (FDI) and Economic Growth: A Panel Dynamic Data Validation," MPRA Paper 56386, University Library of Munich, Germany.
    9. repec:eco:journ1:2014-03-22 is not listed on IDEAS

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