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How to Maximize the Domestic Development Orientation of Foreign Direct Investment

In: The Palgrave Handbook of Development Finance

Author

Listed:
  • Joshua Yindenaba Abor

    (University of Ghana Business School)

  • Isaac Kofi Bekoe

    (University of Waterloo)

Abstract

Foreign direct investment (FDI) is recognized to play an important role and contributes significantly to the economic growth of many countries. This chapter offers a comprehensive examination of FDI trends, determinants, benefits, and strategies to maximize its positive impact. It delves into the dynamic nature of global economic activities, highlighting the shifting patterns in FDI outflows and inflows across regions. The determinants of FDI, ranging from macroeconomic factors to regulatory environments, are thoroughly analyzed, accompanied by empirical evidence showcasing diverse contextual influences. The chapter emphasizes the multifaceted benefits of FDI for developing countries, including economic growth, technological advancement, and skill development. However, it also scrutinizes potential drawbacks, such as asymmetric information problems and environmental concerns. The discussion culminates in a strategic framework outlining specific actions for host countries to maximize the domestic development orientation of FDI. Overall, the chapter provides valuable insights for policymakers, investors, and scholars navigating the complex landscape of international investments.

Suggested Citation

  • Joshua Yindenaba Abor & Isaac Kofi Bekoe, 2025. "How to Maximize the Domestic Development Orientation of Foreign Direct Investment," Springer Books, in: George Kararach & Emmanuel Pinto Moreira & Victor Murinde (ed.), The Palgrave Handbook of Development Finance, chapter 0, pages 217-238, Springer.
  • Handle: RePEc:spr:sprchp:978-3-031-77422-5_11
    DOI: 10.1007/978-3-031-77422-5_11
    as

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