Posted by: Dirk | March 26, 2007

Resource flows to developing countries

There is a graph that I needed to have for my thesis. It would present the total resource flows to developing countries in the last 20 years, showing that foreign direct investment (FDI) has gained. This is the result of a change in development policies. Many countries have liberalized their financial markets, hoping to attract FDI. FDI should bring direct and indirect benefits to countries. Direct effects work through an increase in employment, taxes and better products. Indirect effects include spillovers and linkages. Which somehow reminds me of my thesis. Well, turns out that the World Investment Report 2006 contains just the graph I was looking for. Thank you!

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