Foreign Direct Investment (FDI) has become an increasingly important driver of economic growth in developing countries. FDI...
Foreign Direct Investment and Developing Economies
Foreign Direct Investment (FDI) is the investment of resources by a company in a foreign country. This often involves setting up a subsidiary or joint venture. In developing economies, FDI can bring significant benefits, including:
- Job creation: FDI can create new jobs, especially in sectors like manufacturing and services.
- Technology transfer: Foreign companies often bring advanced technology and management practices to developing countries.
- Infrastructure development: FDI can stimulate the development of infrastructure, such as roads, ports, and airports.
- Market access: FDI can provide developing countries with access to new markets, both for their exports and for foreign goods.
