FDI and Economic Development: A Conceptual Study

Author(s): Shiv Kumar and Anil Kumar

Abstract:

Foreign Direct Investment (FDI) has emerged as a critical driver of globalization and a catalyst for economic development. It not only brings capital but also facilitates technology transfer, skill enhancement, employment generation, and integration into global value chains. However, the developmental impact of FDI is often conditioned by host-country policies, institutional frameworks, and absorptive capacities. This conceptual study explores the theoretical foundations of FDI, its role in economic development, and the key debates surrounding its benefits and limitations. By reviewing major theories and existing literature, the paper highlights the importance of creating enabling environments that maximize FDI’s positive impact while minimizing its potential risks. The study concludes that FDI, if strategically aligned with national development goals, can significantly enhance sustainable and inclusive growth.

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Pages: 59-61     |    3 View     |    0 Download