Introduction

Harbhajan S. Kehal, Harender H. Samtani and Jagjit S. Sawhney

A chapter in Foreign Investment in Developing Countries, 2004, pp 1-12 from Palgrave Macmillan

Abstract: Abstract Foreign investment can play a crucial role in the development of the economies of the developing countries. It can supplement the host country’s resources and provide a valuable injection in the capital formation process. In addition, it can lead to the introduction of new technologies and widening of markets for the products of the host countries. Foreign investment can take the form of official or non-official flows. The non-official flows include foreign direct investment (FD1) and portfolio investment. Foreign investment brings with it a host of benefits such as the transfer of production technologies and know-how, employment, strengthening of the industrial base and competitiveness and acceleration of development in various sectors and regions. Among other benefits, foreign investment helps to bridge the savings-investment gap in the economy and brings additional resources, technology, management know-how and access to export markets.

Keywords: European Union; Foreign Investment; Portfolio Investment; Current Account Balance; Domestic Saving (search for similar items in EconPapers)
Date: 2004
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-55441-2_1

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DOI: 10.1057/9780230554412_1

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