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


  • Brewer, Thomas L.


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

    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. 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. 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.
    3. repec:eco:journ1:2014-03-22 is not listed on IDEAS
    4. 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'Economique de l'École de gestion à l'Université de Sherbrooke.
    5. Aldaba, Rafaelita M., 1994. "Foreign Direct Investment in the Philippines: A Reassessment," Research Paper Series RPS 1994-10, Philippine Institute for Development Studies.


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