Foreign Direct Investment in Developing Countries Cause and Effect Essay

Foreign Direct Investment in Developing Countries
Looks at the role of foreign direct investment (FDIs) in the improvement of economic conditions of Africa and India.
# 148007 | 1,645 words | 8 sources | APA | 2011

$19.95 Buy and instantly download this paper now


This paper relates that foreign direct investment (FDIs) are a determining factor in the economic growth of any region; however, certain countries are more able to attract FDIs. Next, the author examines the successes of FDI in India, which have jump-started India's GDP to one of the largest in the developing world. Despite political challenges, the lure of its natural resources also rapidly is making African countries a prime market. The paper underscores that not only do FDIs prevent financial crisis but also there is a correlation between the improvement in the quality of life of children in poor nations with the introduction of FDIs in that region. This paper contains a figure.

From the Paper:

"Many critics question why the advantages of FDIs were not so apparent in the first place. The answer lies in the advent of globalization. In the past, globalization was a concept only. Its recent emergence has led to many reforms and changes in the way business and economics are run these days. Globalization paved the way for many novel ideas that were in the past, considered wishful thinking. FDIs were among such concepts, idealized on paper, but not applicable to the real world. International FDIs have proven to be one of the single most supporters of the concept itself, and it has all happened with the emergence of the concept of globalization."

Sample of Sources Used:

  • Alfaro L, Chanda A, Kalemli-Ozcan S, and Sayek S, 2006. 'How Does Foreign Direct Investment Promote Economic Growth? Exploring the Effects of Financial Markets on Linkages'. Site last accessed on March 10, 2010 from
  • Bhaumik S K, P L Beena, L Bhandari and S Gokarn, 2003. 'Survey of FDI in India. DRC Working Papers, Foreign Direct Investment in Emerging Markets'. CENTRE FOR NEW AND EMERGING MARKETS. LONDON BUSINESS SCHOOL NO. 6. Site last accessed on March 10th, 2010 from
  • Kumo W L, January 7th, 2009. 'Foreign Direct Investment in Africa: Trends, Opportunities and Challenges'. The American Chronicle Site last accessed on March 10, 2010 from
  • Kyaw S, 2003. 'Foreign Direct Investment to Developing Countries in the Globalised World' Paper presented at the DSA Conference 2003. University of Strathclyde, Glasgow, 10-12 September, 2003.
  • Nunenkamp P, 2002. 'To What Extent Can Foreign Direct Investment Help Achieve International Development Goals?' Kiel Working Paper No. 1128. Kiel Institute for World Economics Deusternbrooker Weg 120, 24105, Kiel Germany.

Cite this Cause and Effect Essay:

APA Format

Foreign Direct Investment in Developing Countries (2011, August 23) Retrieved September 23, 2023, from

MLA Format

"Foreign Direct Investment in Developing Countries" 23 August 2011. Web. 23 September. 2023. <>