Attracting Foreign Direct Investment in Developing Countries: Determinants and Policies-A Comparative Study between Mozambique and China

Paulo Elicha Tembe and Kangning Xu

International Journal of Financial Research, 2012, vol. 3, issue 4, 69-81

Abstract: Attraction of foreign direct investments has been deserving attention for many governments worldwide. Using different literature about Foreign Direct Investment, this paper analyzes the determinants and policies to attract foreign direct investments to developing countries and makes a comparative study between Mozambique and China. The results found, indicate the difference among countries in attracting investments due to their different geographic location, conditions of infrastructure (poor or developed), corruption, taxes as well as the implementation of the policies by the governments. These results also show that successful policies in China should not be copied or implemented by Mozambique. Foreign Direct Investment must only be allowed to operate according to local conditions and must conform to certain performance requirements that will ensure a positive impact on development. Evidence within this paper shows that Africa is different in attracting FDI due to the lack of high return on capital and infrastructure development, and openness to trade.

Keywords: FDI; Developing countries; Determinants; Policies; A comparative study (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciedu.ca/journal/index.php/ijfr/article/view/1852/931 (application/pdf)
http://www.sciedu.ca/journal/index.php/ijfr/article/view/1852 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jfr:ijfr11:v:3:y:2012:i:4:p:69-81

Access Statistics for this article

International Journal of Financial Research is currently edited by Gina Perry

More articles in International Journal of Financial Research from International Journal of Financial Research, Sciedu Press
Bibliographic data for series maintained by Gina Perry ().