FDI Flows to Emerging Economies: Trends and Determinants

Abstract

This study conducts a comparative analysis of the determinants and implications of foreign direct investment (FDI) inflows in a selection of emerging economies. By integrating quantitative data analysis and qualitative case studies, the research aims to provide insights into the diverse FDI trends and their impacts on the economic development of these nations.Through a comprehensive review of relevant literature, the research contextualizesthe role of FDI as a crucial driver of economic growth, technological advancement, and industrial transformation in emerging economies. The study analyzes the key determinants influencing FDI inflows, including market size, regulatory environment, political stability, infrastructure quality, and institutional frameworks, shedding light on the factors that attract foreign investors to these regions.Moreover, the research assesses the impacts of FDI on the host economies, focusing on its contributions to job creation, technology transfer, and the enhancement of local industries' competitiveness. By examining the potential spillover effects of FDI on the broader economy, the study highlights the significance of FDI in promoting sustainable economic development and fostering innovation in emerging economies. Additionally, the comparative analysis delves into the challenges and risks associated with excessive reliance on FDI. It evaluates the potential vulnerabilities arising from economic fluctuations andunequal distribution of benefits, emphasizing the need for robust policy frameworks to manage the risks associated with FDI dependence.