Development economics

Table of Contents

1. Topic pack - Development economics - introduction
2. 4.1 Economic development (notes)
3. 4.1 Economic development (questions)
4. 4.2 Measuring Economic Development (notes)
5. 4.2 Measuring development (questions)
6. 4.3 The role of domestic factors in economic development (notes)
7. 4.3 The role of domestic factors in economic development (questions)
8. 4.4 The role of international trade (notes)
9. 4.4 The role of international trade (questions)
10. 4.5 The role of Foreign Direct Investment (FDI) (notes)
    1. Role of FDI - introduction
    2. Multinational Corporations
    3. The benefits of MNCs
    4. The problems of Multinational Enterprises
    5. Growth of importance of MNCs in recent decades
    6. Multinationals and monopoly power
    7. FDI: good or bad?
    8. Chinese foreign direct investment in Africa (video)
    9. Development - Pause for thought
11. 4.5 The role of foreign direct investment (questions)
12. 4.6 The role of foreign aid and multilaterial development assistance (notes)
13. 4.6 The role of foreign aid and multilateral development assistance (questions)
14. 4.7 The role of international debt (notes)
15. 4.7 The role of international debt (questions)
16. 4.8 The balance between markets and intervention (notes)
17. 4.8 The balance between markets and intervention (questions)
18. Print View

4.5 The role of Foreign Direct Investment (FDI) Introduction

In defining Foreign Direct Investment you must understand it is not the same as Portfolio Investment or saving in another country´s bank or government (eg buying Cvt Bonds). Portfolio investment (see balance of payments - Financial Account) is to do with buying debt or paper assets such as shares.

Foreign Direct Investment

is funding the operations of existing businesses in a developing country from abroad and/or funding the start up of a new business in the developing country.

See next page for more sophisticated definitions but always be aware of the above description.