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Industrialized countries' policies affecting foreign direct investment in developing countries (Vol. 2) : Country studies (English)

The economies of the developing countries have been marked by growing foreign debt burdens, worsening balance of payments difficulties and a lack of resources for new investment. These factors have crippled economic growth. To revitalize their economies, many developing countries are undertaking painful structural adjustment in economic and financial management. These restructuring efforts need to be accompanied by a heavy infusion of fresh capital from abroad. Given the limited possibilites for foreign public borrowing due to the already high debt burden and to the tendency of most banks in industrialized countries to reduce their exposure in developing countries, a major contribution must come from the private sector, both domestic and foreign. In the past, considerable research had been published on the unsatisfactory growth of FDI to developing countries. The research focused exclusively on the shortcomings of developing countries' policies. No attempt was made to assess whether there are policies and attitudes in the industrialized countries that might discourage and hamper the flow of FDI into developing countries. The present report tries to fill this gap by focussing its analysis exclusively on policies and institutions in industrialized countries that have a bearing on FDI flows. The report is based on country studies of six industrialized countries, examining the policies and institutions relevant to the subject matter in the context of recent trends in FDI flows.

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Bachmann, H.B. Dreyer, J.S. Singer, A. Froot, K.

Industrialized countries' policies affecting foreign direct investment in developing countries (Vol. 2) : Country studies (English). PAS research paper series Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/342371493331460918/Country-studies