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Understanding Foreign Direct Investment

In: Liberalizing Financial Services and Foreign Direct Investment

Author

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  • Laura Páez

    (United Nations Economic Commission for Africa)

Abstract

Capital is considered a vital determinant of economic growth. It enables countries to expand their productive capacity beyond their given production possibilities. Some argue that the dynamic effects of capital are superior to those of other factors of production, such as labour or technology. Indeed, capital may determine the availability of other factors, since it can be used to finance their acquisition. This dual function has given capital a primary role in fostering economic development.

Suggested Citation

  • Laura Páez, 2011. "Understanding Foreign Direct Investment," Palgrave Macmillan Books, in: Liberalizing Financial Services and Foreign Direct Investment, chapter 1, pages 7-36, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-31682-9_2
    DOI: 10.1057/9780230316829_2
    as

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