Discuss the Impact of International trade or Inward FDI on economic growth or development in an Emerging Economy

High school
Coursework
Finance & Accounting
Pages 10 (2510 words)
Download 0
The Impact of Inward FDI on Economic Growth or Development of an Emerging Economy Table of Contents Introduction 3 The Economy of India 3 FDI in India 5 In the recent past 5 At present 6 Role of FDI in Economic Growth 9 Conclusion 11 References 12 Bibliography 14 Introduction In today’s globalised world Foreign Direct Investment (FDI) is one of the most important sources of economic growth for most of the developed as well as developing nations…

Introduction

There are several definitions which are provided by different international organizations like IMF and The United Nations. The International Monetary Fund’s (IMF) definition says that FDI refers to an investment that’s main objective is to obtain a ‘lasting interest’ in an entity which operates in an economy that is different from the economy where the investor operates in (Moosa, 2002). A ‘benchmark definition’ of FDI is provided by the Organization for Economic Co-operation and Development (OECD). It says “foreign direct investment reflects the objective of obtaining a lasting interest by a resident entity in one economy (direct investor) in an entity resident in an economy other than that of the investor (direct investment enterprise)” (Organisation For Economic Co-Operation And Development, 1999). This paper discusses the role of FDI in an emerging economy like India. It aims to provide a clear picture about how FDI has played an important role in the economic growth of the country. Furthermore, the paper also includes a brief overview of the Indian economy and the way in which it is performing over the past two decades. ...
Download paper
Not exactly what you need?

Related papers

The economic growth and financial development relating to brazil
The economic potential of Brazil, the strong global demand for its products, steady results from its economic policies and success factors of its major global players have eventually helped the country become one of the brightest starts in the world economy (Brainard, 2009, p. 1- 2) …
Macroeconomic Convergence, Development And Growth.
The convergence process is dependent on a large number of factors such as the population growth, speed of capital formation and the presence of efficient economic policies as well as appropriate financial institutions. Along with this the accumulation of human and physical capital are important as it significantly influences the savings and rate of investment (Halmai & Vasary, 2009, p.3).…
The Impact of 2008 Financial Crisis on UK's Cross Border Mergers
e of respect among a diverse group of employees; and (5) the importance of carefully studying the debt obligations of a foreign-based company before closing a cross border merger agreement. Taking these recommendations into considerations can increase multinational companies’ success when entering into a cross border merger agreement. Table of Contents Executive Summary…
Macroeconomic convergence, financial development and economic growth: CHINA
This paper reviews several articles which focuses on the economic growth of China and the impact of all the internal and external factors. The Economic Rise of China: Threat or Opportunity? In this article the author has focused on the international aspects of economic development in China. China has changed its foreign trade policies since 1978 when it encouraged free trade and abolished trade…
The drivers of Taiwan's economic growth between 1949-1990
There was nothing supernatural about them. These include the reason for the US aid, the training of the workers for the German optical lens factory and the infrastructure development by Japan to support its war efforts. In addition to these existing benefits, the decisions and actions of the policy makers fetched the unexpected results. While they formulated the policies they themselves were…
Discuss the assertion that the sole purpose of the tax system is to promote economic growth
Most, though not all of these studies did establish an undesirable effect of taxes on different measures of a country’s economic performance. A number of taxes especially income, property, capital gain and consumption based taxes have always attracted a lot of attention with respect to their impact on economic growth. Most of countries across the globe operate almost similar taxation policies…
The impact of the economic crisis in the Saudi economy.
The project deals with the impact of economic crisis in Saudi Arabia. Saudi Arabia is a key player in the scenario of international trade, imports and exports. The effect of the economic crisis in Saudi Arabia has been compared with the impacts on the leading economies of the world which provides a comprehensive picture of the global effects of the economic crisis. Introduction Saudi Arabia is an…