Foreign direct investment strategies by developing country multinationals: A diagnostic model for home country effects

In the process of globalization, the importance of foreign direct investment has changed significantly, because today they represent one of the most important factors of competitiveness, development and application of new technology, education, innovation and economic development. As a significant form of financing national economies, foreign direct investment is a form of investment that is realized outside the home country, where one of the most important goals of both developed and especially developing countries is to attract as much foreign direct investment. A large number of developing countries, including Serbia, have liberalized restrictions on foreign investment and free trade in the last two decades, liberalized national financial markets and begun privatization processes. Due to numerous problems and consequences of economic crises they have faced, many developing countries, as well as Serbia, view foreign direct investment as one of the most important factors for stimulating trade, employment growth, openness of national economies, and establishing overall macroeconomic stability. The aim of this paper is to point out the importance and dynamics of foreign direct investments in Serbia, as well as the key incentives for their attraction. Also, in addition to the theoretical review of foreign direct investments, the effects of foreign direct investments are presented in the paper.

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Regional and Sectoral Disparities in Inflow of FDI in India

Regional Development ◽

10.4018/978-1-4666-0882-5.ch110 ◽

2012 ◽

pp. 149-162 ◽

Cited By ~ 1

Author(s):

Behrooz Shahmoradi

Keyword(s):

Developing Countries ◽

Economic Development ◽

Foreign Direct Investment ◽

Developing Country ◽

Direct Investment ◽

Steady Increase ◽

Policy Makers ◽

Fdi Inflows ◽

Reform Period ◽

Micro Level

During the last two decades, Foreign Direct Investment (FDI) has become increasingly important in the developing world, with a growing number of developing countries seeking in attracting substantial and rising amounts of inward FDI. Furthermore, FDI has become the most important source of finance that can contribute to economic development. Recognizing this, all the governments want to attract it. India as a developing country is not an exception in this regard therefore study the different aspects of FDI can be helpful for policy makers in macro as well as micro level. Since 1990, FDI has been considered as the most powerful driver of economic development. While India has seen a steady increase in FDI inflows in the post-reform period, therefore, this study tries to analyze the regional and sectoral disparities in Inflow of FDI in India since 1990. The analysis showed that there is a disparity between states in India and it also indicates a shift from primary and secondary sectors to tertiary sectors and pervasive computing areas.

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Evaluating Foreign Direct Investment Projects

Planning and Analyzing Foreign Direct Investment Projects - Advances in Finance, Accounting, and Economics ◽

10.4018/978-1-5225-7696-9.ch006 ◽

2018 ◽

pp. 193-239

Keyword(s):

Foreign Direct Investment ◽

Host Country ◽

Direct Investment ◽

Home Country ◽

Investment Project ◽

Cash Flows ◽

Parent Company ◽

Investment Projects ◽

Country Level ◽

At Home

As explained in the foregoing chapter, once the relevant cash outflows and inflows associated with a foreign direct investment project are estimated so as to calculate the net cash flows, the desirability of the investment project should then be determined in terms of its economic profitability. Therefore, in this chapter the methods widely used in evaluating investment projects are discussed and their advantages as well as shortcomings are highlighted. Later in the chapter, evaluating foreign direct investment projects from the viewpoint of the parent company is elaborated in terms of profit and/or income transferred to the home country. The same investment evaluation techniques were applied to the net cash flows transferred to the home country of the parent company. The possible income and/or dividends to be remitted to the home country of a parent company are identified and discussed so as to reflect the viewpoints of investing parent companies when planning foreign direct investments. This two-level evaluation approach is generally followed in practice to make sure that direct investments are profitable at both host and home country levels, since an investment project that is not profitable at host country level would not be profitable at home country level either or a project that is profitable at host country level may not be profitable at home country level.

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Regional and Sectoral Disparities in Inflow of FDI in India

Pervasive Computing for Business ◽

10.4018/978-1-60566-996-0.ch016 ◽

2010 ◽

pp. 234-246

Author(s):

Behrooz Shahmoradi

Keyword(s):

Developing Countries ◽

Economic Development ◽

Foreign Direct Investment ◽

Developing Country ◽

Direct Investment ◽

Steady Increase ◽

Policy Makers ◽

Fdi Inflows ◽

Reform Period ◽

Micro Level

During the last two decades, Foreign Direct Investment (FDI) has become increasingly important in the developing world, with a growing number of developing countries seeking in attracting substantial and rising amounts of inward FDI. Furthermore, FDI has become the most important source of finance that can contribute to economic development. Recognizing this, all the governments want to attract it. India as a developing country is not an exception in this regard therefore study the different aspects of FDI can be helpful for policy makers in macro as well as micro level. Since 1990, FDI has been considered as the most powerful driver of economic development. While India has seen a steady increase in FDI inflows in the post-reform period, therefore, this study tries to analyze the regional and sectoral disparities in Inflow of FDI in India since 1990. The analysis showed that there is a disparity between states in India and it also indicates a shift from primary and secondary sectors to tertiary sectors and pervasive computing areas.

Download Full-text