Foreign Direct Investment in Developing Countries

A Theoretical Evaluation

  • Sarbajit Chaudhuri
  • Ujjaini Mukhopadhyay

Table of contents

  1. Front Matter
    Pages i-xix
  2. Sarbajit Chaudhuri, Ujjaini Mukhopadhyay
    Pages 1-17
  3. Sarbajit Chaudhuri, Ujjaini Mukhopadhyay
    Pages 19-45
  4. Sarbajit Chaudhuri, Ujjaini Mukhopadhyay
    Pages 47-77
  5. Sarbajit Chaudhuri, Ujjaini Mukhopadhyay
    Pages 79-100
  6. Sarbajit Chaudhuri, Ujjaini Mukhopadhyay
    Pages 101-137
  7. Sarbajit Chaudhuri, Ujjaini Mukhopadhyay
    Pages 139-160
  8. Sarbajit Chaudhuri, Ujjaini Mukhopadhyay
    Pages 161-209
  9. Sarbajit Chaudhuri, Ujjaini Mukhopadhyay
    Pages 211-261
  10. Sarbajit Chaudhuri, Ujjaini Mukhopadhyay
    Pages 263-287
  11. Sarbajit Chaudhuri, Ujjaini Mukhopadhyay
    Pages 289-300
  12. Back Matter
    Pages 301-314

About this book

Introduction

In development literature Foreign Direct Investment (FDI) is traditionally considered to be instrumental for the economic growth of all countries, particularly the developing ones. It acts as a panacea for breaking out of the vicious circle of low savings/low income and facilitates the import of capital goods and advanced technical knowhow. This book delves into the complex interaction of FDI with diverse factors. While FDI affects the efficiency of domestic producers through technological diffusion and spill-over effects, it also impinges on the labor market, affecting unemployment levels, human capital formation, wages (and wage inequality) and poverty; furthermore, it has important implications for socio-economic issues such as child labor, agricultural disputes over Special Economic Zones (SEZ) and environmental pollution. The empirical evidence with regard to most of the effects of FDI is highly mixed and reflects the fact that there are a number of mechanisms involved that interact with each other to produce opposing results. The book highlights the theoretical underpinnings behind the inherent contradictions and shows that the final outcome depends on a number of country-specific factors such as the nature of non-traded goods, factor endowments, technological and institutional factors. Thus, though not exhaustive, the book integrates FDI within most of the existing economic systems in order to define its much-debated role in developing economies. A theoretical analysis of the different facets of FDI as proposed in the book is thus indispensable, especially for the formulation of appropriate policies for foreign capital.

Keywords

Developing Economies Foreign Direct Investment (FDI) Foreign Portfolio Investment (FPI)

Authors and affiliations

  • Sarbajit Chaudhuri
    • 1
  • Ujjaini Mukhopadhyay
    • 2
  1. 1.Department of EconomicsUniversity of CalcuttaKolkataIndia
  2. 2.Department of EconomicsBehala CollegeKolkataIndia

Bibliographic information

  • DOI https://doi.org/10.1007/978-81-322-1898-2
  • Copyright Information Springer India 2014
  • Publisher Name Springer, New Delhi
  • eBook Packages Business and Economics
  • Print ISBN 978-81-322-1897-5
  • Online ISBN 978-81-322-1898-2
  • About this book