Foreign Direct Investments and Technology Transfers in Development: A Perspective on Recent Literature

Abstract

Flows of foreign direct investment (FDI) are increasingly being seen as a very important channel for the transfer of technology, capital and entrepreneurship. Developing countries compete vigorously among themselves to attract greater volumes of FDI with a variety of policy instruments. This paper provides a selective review of the growing body of literature on the determinants of FDI and other forms of technology transfer and on their developmental impact, with a view to deriving policy implications and an agenda for further research.

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