Additional factors which might be considered when examining the impact of Foreign Direct Investment on economic growth. Using Brazil as a case study.

brazil has received notable levels of inward investment all over the aside few decades which has not resulted in the higher produce drift as scotch theory would assume. Often the ostracise strike of Foreign Direct Investment (FDI) is attributed to the state of several(a) factors of the market, such as the role of institutions and government policy or the insufficient ?absorptive capabilities? of local labour. Current literature suggests it is the strategical unite to somewhat(prenominal) dependant variables which will influence the successful trespass of FDI on the economy. This paper accepts this premise and develops the theory further, by suggesting in that respect are superfluous factors or ?characteristics? of FDI which will ease the infallible strategic links to the dependant variables. Ignoring these characteristics whitethorn select to the strategic links not eventuating and therefore, the resulting benefits on economic out growing not occurring. This p aper argues it is the modal value in which FDI was attracted to Brazil, which failed to dispense with the benefits of FDI to be richly realised. This paper further suggests, there may be sectors deep down an economy which will leave the dependant variables of FDI to develop more(prenominal) than other sectors. This paper concludes that little reduce to date has been offered to these additional factors and their impact on economic growth. apt(p) their significance in the case of Brazil, further detailed abbreviation across several countries is required to support the initial theory. The structure of this paper is as follows; fraction 1, presents a summary of the literature in FDI and economic growth theory; Section 2, outlines Brazil?s improvement to FDI and outcomes; Section 3, provides analysis and discussion of the issues focus on mode of FDI and sector of investment; Section 4, presents some concluding comments. Section 1: FDI and Growth theoryFDI enhances economic gr owth because it substitutes domestic... ! If you want to accept a full essay, order it on our website: OrderCustomPaper.com

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