Introduction and Overview

Tony Addison, Basudeb Guha‐Khasnobis and George Mavrotas

The World Economy, 2006, vol. 29, issue 1, 1-8

Abstract: As one of globalisation's most visible dimensions, foreign direct investment (FDI) is central to the prospects for developing countries in the world economy. Key issues include the direction of causation between FDI and growth, the potential role of the new information and communication technologies in attracting FDI flows (as well as the role of FDI in building such infrastructure), the process of skill acquisition associated with FDI, and the specific problems that Africa faces in attracting more FDI. Achievement of the Millennium Development Goals requires very fast growth in output and employment if global poverty is to be halved, and FDI could play a very positive role if its development benefits are maximised.

Date: 2006
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