The Role of Foreign Direct Investment and its Determinants

Simran Kahai

Chapter 2 in Foreign Investment in Developing Countries, 2004, pp 33-49 from Palgrave Macmillan

Abstract: Abstract Foreign direct investment (FDI) was a key factor in shaping the world economy during the 1980s and 1990s. During this period, it grew faster than trade and domestic production, with the world stock of FDI having reached nearly $ 6 trillion in 2000, ten times the level of 1980 (The Economist 24 February 2001). FDI has now come to be widely recognized as major contributor to growth and development. Global FDI inflows measured $ 865 billion in 1999, compared with $ 209 billion in 1990 (World Bank, 2000). FDI grew by 18 per cent in 2000, faster than other economic aggregates such as world production, capital formation and trade.

Keywords: Foreign Direct Investment; Gross Domestic Product; Host Country; Foreign Firm; Transfer Price (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_3

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DOI: 10.1057/9780230554412_3

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