IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-1-349-02290-8_4.html
   My bibliography  Save this book chapter

Welfare of Host Countries: Foreign Investment as a ‘General’ Inflow of Capital

In: Foreign Investment, Transnationals and Developing Countries

Author

Listed:
  • Sanjaya Lall

    (Institute of Economics and Statistics)

  • Paul Streeten

    (Queen Elizabeth House and Institute of Commonwealth Studies)

Abstract

The traditional method of analysing the effects of foreign investment has been to treat it as a ‘general’ inflow of capital from abroad, and to use the standard tools of neoclassical welfare, trade and growth theory to work out its impact on the host economy. By a ‘general’ inflow of capital we mean one or both of two things: first, in the narrow usage of ‘pure’ trade theory, direct investment inflows often are not distinguished from other types of capital inflows (loans, portfolio investments) from abroad, the whole being treated as foreign ‘borrowing’; second, in a slightly broader sense, foreign direct investment is differentiated from other capital inflows—but by virtue of the fact that profits rather than interest are paid abroad, and that the risk element is rather different—but the main distinguishing features of the large oligopolists (which in fact dominate international investment) are not taken into account in any significant way.

Suggested Citation

  • Sanjaya Lall & Paul Streeten, 1977. "Welfare of Host Countries: Foreign Investment as a ‘General’ Inflow of Capital," Palgrave Macmillan Books, in: Foreign Investment, Transnationals and Developing Countries, chapter 0, pages 81-86, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-02290-8_4
    DOI: 10.1007/978-1-349-02290-8_4
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-1-349-02290-8_4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.