Foreign Direct Investments and its Effects on Developing Countries

Abstract

[eng] Foreign Direct Investment is a fairly recent term which effects have been observable specially during these last decades. There is a high interest by Developing Countries to attract foreign investment as it has been shown to lead to a path of growth if properly and adequately managed mainly through an increase of productivity, adoption of foreign technological transfers and an overall improvement in management. Although most empirical evidence tends to show the positive impact on a macroeconomic level, some seem to oppose this inherently favourable tendency and present a set of counterpoints. Throughout this literature a deep insight will be held on the effects and impacts of Foreign Direct Investment.