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The Role of Foreign Direct Investment and its Determinants

In: Foreign Investment in Developing Countries

Author

Listed:
  • Simran Kahai

Abstract

Foreign direct investment (FDI) was a key factor in shaping the world economy during the 1980s and 1990s. During this period, it grew faster than trade and domestic production, with the world stock of FDI having reached nearly $ 6 trillion in 2000, ten times the level of 1980 (The Economist 24 February 2001). FDI has now come to be widely recognized as major contributor to growth and development. Global FDI inflows measured $ 865 billion in 1999, compared with $ 209 billion in 1990 (World Bank, 2000). FDI grew by 18 per cent in 2000, faster than other economic aggregates such as world production, capital formation and trade.

Suggested Citation

  • Simran Kahai, 2004. "The Role of Foreign Direct Investment and its Determinants," Palgrave Macmillan Books, in: Harbhajan S. Kehal (ed.), Foreign Investment in Developing Countries, chapter 2, pages 33-49, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-55441-2_3
    DOI: 10.1057/9780230554412_3
    as

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