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The Effects of Foreign Direct Investments for Host Country’s Economy

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  • KURTISHI-KASTRATI Selma

Abstract

Foreign Direct Investment (FDI) is seen as the fundamental part for an open and successful international economic system and a major mechanism for development. In this circumstance, the paper examines the benefits of FDI as a key component for successful and sustainable economic growth and also as a part of a method to social improvement. The aim is to highlight the most important channels through which FDI makes a significant and exceptional impact on the economic development of the host countries. At the same instance, it is important to recognize that, like all things, FDI is not all good no bad. A separate discussion is devoted to the potential negative impacts of FDI flows on host economies.

Suggested Citation

  • KURTISHI-KASTRATI Selma, 2013. "The Effects of Foreign Direct Investments for Host Country’s Economy," European Journal of Interdisciplinary Studies, Bucharest Economic Academy, issue 01, March.
    • Handle: RePEc:jis:ejistu:y:2013:i:01:id:369
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    References listed on IDEAS

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    Cited by:

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    More about this item

    Keywords

    FDI; resource transfer effects; international trade; privatisation;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out

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