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Trends and Determinants of Foreign Direct Investment in Emerging Economies of Asia

In: Foreign Investment in Rapidly Growing Countries

Author

Listed:
  • Rekha Mehta
  • Santosh Bhandari

Abstract

Foreign direct investment (FDI) provides financial resources for investment in a host country and thereby augments domestic saving efforts. It also plays an important role in accelerating the pace of economic growth. In view of the rapid economic liberalization process taking place the question of attracting FDI for economic development in the emerging economies has came into sharper focus. Interestingly for analytical purposes, the definition of FDI has been refined since the 1980s. The IMF defined FDI in 1977 as an investment made to acquire lasting interest in enterprises operating outside the economy of the investor. The foreign entity or the group of associated entities that makes the investment is termed the direct investor. Some degree of equity ownership is almost always considered to be association with an effective voice in the management of an enterprise. (IMF 1977)

Suggested Citation

  • Rekha Mehta & Santosh Bhandari, 2005. "Trends and Determinants of Foreign Direct Investment in Emerging Economies of Asia," Palgrave Macmillan Books, in: Harbhajan S. Kehal (ed.), Foreign Investment in Rapidly Growing Countries, chapter 10, pages 180-197, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-55488-7_10
    DOI: 10.1057/9780230554887_10
    as

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