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The Pattern of Inward FDI Geographical Distribution: Can Developing Countries Base Their Development on Those Flows?

In: Financial Developments in National and International Markets

Author

Listed:
  • Jesus Ferreiro
  • Carmen Gomez
  • Carlos Rodriguez

Abstract

Developing economies have been recommended strongly since the 1980s by international organizations (WB, WTO, IMF, UNCTAD) to rely primarily on foreign direct investment (FDI) as a source of external funds and as an engine for growth. It is argued that FDI is superior to other types of capital flows, acting as a kind of ‘good cholesterol’, because it offers to the host country not just less volatile financial resources but also a bundle of important assets for growth: access to modern technology, and know-how. This recommendation has been general to all the developing economies, without taking into account their structural differences. The success of some Latin-American and South-East Asian economies would be examples to be imitated.

Suggested Citation

  • Jesus Ferreiro & Carmen Gomez & Carlos Rodriguez, 2006. "The Pattern of Inward FDI Geographical Distribution: Can Developing Countries Base Their Development on Those Flows?," Palgrave Macmillan Books, in: Philip Arestis & Jesus Ferreiro & Felipe Serrano (ed.), Financial Developments in National and International Markets, chapter 9, pages 149-164, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-52237-4_9
    DOI: 10.1057/9780230522374_9
    as

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