FOREIGN DIRECT INVESTMENT: A LEAD DRIVER FOR SUSTAINABLE DEVELOPMENT

Foreign direct investment (FDI) is an integral part of an open and effective international economic system and a major catalyst to development. The role of foreign direct investment (FDI) in driving economic growth and development has been contested one. Countries have liberalized of economic development and modernization, income growth and employment. Some argue that FDI leads to economic growth and productivity increases in the economy as a whole and hence contributes to differences in economic growth and development performances across countries, but others stress the risk of FDI destroying local capabilities and extracting natural resources without adequately compensating poor countries. Developing there have always been views in favor of FDI and against it. Countries, emerging economies and countries in transition have come increasingly to see FDI as a source their FDI regimes and pursued other policies to attract investment. This paper examines trends in the relationship between FDI and development.

By Mani Kansal, Puja Paliwal,  Gunjan Maheshwari

Key Words: Foreign Direct Investment, Economic Development, Employment, Increase Productivity.

(Full article is published in Voice of Research-An International Journal)