Introduction

Abstract

The last two decades have witnessed unparalleled changes in the global organization of industry with far-reaching effects on the evolving patterns of integration of developing countries into the world economy. Much of this has been caused by relatively high rates of growth of international trade and investment flows – much higher than that of world Gross Domestic Product (GDP). Accordingly, foreign direct investment and economic growth has emerged as one of the central themes of development literature in the past two decades.