Is foreign direct investment (FDI) good for developing countries?

Yes, because it creates jobs.
90% (37 votes)
No, because transnational corporations tend to abuse their position of power.
10% (4 votes)
Total votes: 41

Comments

I think that developing countries are liberalizing investment regimes to attract foreign direct investment. It has long been known that the benefits of attracting foreign direct investment can be quite significant, which is reflected in the acquisition of the latest technologies, increasing the degree of country involvement in international trade, improving the competitive environment, the formation of human capital, etc. Moreover, moving to a host country with cleaner technologies leads not only to the improvement of the environment, but also to the formation of a socially responsible business policy. All these benefits contribute to economic growth, which is the main tool for poverty reduction in these countries. However, it is quite difficult to measure the economic impact of FDI. The benefits of FDI are not automatically and equally expressed in different countries and sectors of the economy. Determining the impact of foreign direct investment on economic development usually comes down to two main approaches. The first approach involves an econometric analysis of the relationship between FDI inflows and different economic development indicators. The second approach involves a qualitative analysis of the impact of transnational corporations on various sectors of the economy without attempting to clearly parameterize the effect or rate of return.
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Expert vote

I am deeply convinced that FDI is a real blessing for developing countries. They have numerous benefits: they stimulate economic development, create new jobs, increase wages, and therefore the opportunity to save more and consume more and thus reduce poverty. Also, investments more involve the country in international relations and business, stimulate trade and export. As for the negative effects, such as the depletion of natural resources and unsustainable development, I can say that in the future the situation will change dramatically, because very soon, humanity will face the exhaustion of basic fuel resources. And the energy production system will change dramatically. I can give an example of Ukraine, we have both natural resources and a highly skilled workforce (which often goes abroad due to lack of well-paid job), but it requires a little investment, a certain impulse from the outside, since we ourselves cannot seem to get out of this crisis. But Ukraine has a long way to go through reforms and transformations, improving the judicial system and business conditions to make it an attractive investment country. Also speaking of skilled labor, I believe that investments will also affect the development of education in the country, which will improve the quality of the workforce. I hope that the developing countries will be able to achieve a high level of development, including Ukraine, I personally want to stay here and be able to work for the benefit of my country.
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Total votes: 26
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Expert vote

In addition to other comments, I note the following. Increasing the use of factors of production (above all, labour, capital, technology) contributes to the progress in the economic development of the country. These opportunities appear as a result of foreign direct investment too. Therefore, my answer to the question “yes”. Of course, any phenomenon should be characterized on both sides: positive and negative. The negative effects of foreign direct investment (as detailed in the video) should be anticipated. It is necessary to take actions that could reduce their negative impact. The government has a leading role in this matter. That is, the government of the host country must ensure that foreign investment legislation is in line with national interests. However, unfortunately, in the modern world, especially when it comes to economic benefits, often individual interest dominates the national one...
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Total votes: 22
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investments are good for the development of a country because it creates jobs ... take the example of Bolloré or other large companies that invest in West African countries it contributes to the development of these countries. Bolloré alone is investing in the autonomous port of Lome in Togo has created employment and the port itself has become prosperous .. they have profits. and all that contributes to the development of the country
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in my opinion, foreign direct investment is beneficial for the development of a country because it creates jobs and improves the country's economic situation organizations like the World Bank and the IMF are financing projects around the world to help underdeveloped countries to increase their economic growth through productivity
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In my opinion, FDI is an opportunity for the countries to develop their employment sector and to give to a part of the citizens the possibility to make contact with foreign company perspectives and chances of developments through their jobs. First of all, foreign direct investment is important for developing and emerging market countries because they contribute to the host country GDP; the taxes, and the contributions that they give to the host country are some extra money for the country. Secondly, the FDI creates some new opportunities for the people: beside the fact that they offer jobs paid at an international level, the give trainings for specializing in some fields. Third, they bring technology and perspectives to the host country which are hard to be obtain without this opportunities. On the other hand, the countries become quite vulnerable in front of this opportunities: the jobs opportunities offered by the state are in competition with the new ones, the FDI can affect the the strategically important industries if they are in the command of and foreign investment, they can subevaluate their employees starting from the average criteria of the host country.
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Total votes: 19
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In my opinion, both of these answers are correct. Only specific internal and external factors in each country can determine their own correct position. Direct investment clearly creates new jobs, but instead occupies a large share of the market and does not allow businesses to develop independently in a highly competitive environment. Only properly adjusted financial legislation of the country will allow to reduce the abuse of power by foreign investors (guaranteeing the safety of their investments) and to obtain the corresponding benefits for the economy. Developing countries should attract foreign direct investment, not only to increase jobs, but also to enable the introduction of modern technologies into production and the search for new markets.However, it should be remembered that any investment is only a start-up capital, and at the end of the investment project period they will become a significant capital outflow.
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from my point of view, I hate that For developing countries, emerging economies and countries in transition, FDI has become an increasingly important source of economic development and modernization, of income growth. and jobs. They have implemented other measures to attract investment.
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Developing countries and countries with economies in transition are liberalizing investment regimes to attract foreign direct investment. It has long been known that the benefits of attracting foreign direct investment can be quite significant, which is reflected in the acquisition of the latest technologies, increasing the degree of country involvement in international trade, improving the competitive environment, the formation of human capital, etc. Moreover, moving to a host country with cleaner technologies leads not only to the improvement of the environment, but also to the formation of a socially responsible business policy. All these benefits contribute to economic growth, which is a major tool in poverty reduction in these countries.
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Total votes: 20
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I think FDI is a good thing for developing countries. FDI offers some essential benefits to the host country, such as - create new jobs, poverty reduction, encouraging economic development, stimulate trade and export.
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