CHAPTER 5

Foreign Direct Investment and Sustainable Development

In the 1970s and 1980s, the bulk of foreign investments were confined among the developed economies. However, post-1990s there was a substantial increase in the share of capital flowing into developing countries and ever since developing countries have exhibited a reduction in the aid flows and rise in FDI flows. FDI takes place in an institutional context that influences its structure and effects, which include international and multilateral agreements and has an ongoing agenda for liberalizing international trade and international environmental agreements. In the current circumstances mobilizing investment that ensures sustainable development is of prime significance for the majority ...

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