Attracting FDI to Developing Countries

A changing role of governments

1. FDI:-
FDI is an investor which picks up more than 10 % stake in a
company’s equity. Now a day’s most of developing countries are willing
to attracting the FDI investment in country. Because of this country can
increase its growth, utilize its recourses, generate employment in the
country and it brings new technologies in the countries. Its have number
of advantages. So that countries are willing to attract FDI’s.

2. abstract:-
This study examines the efforts of many countries to
promote their economy for attracting the foreign direct investments. It
develops models of determinants of FDI at which extent countries are
able to make itself differentiates for attracting the FDI fund flows.

Most developing countries have shifted toward more

liberal attitudes FDI. There is now strong competition going on with
countries for attracting the FDI’s. Countries are offering tax benefits and
other more incentives after analysing its impact on country. The statically
study lends the support to the concept that policy and promotional
activities around the developing world is leading to a maturity phase of
the life cycle of differential effectiveness of special attractive offer.

Mainly economic, political, institutional that affects the

FDI’s. The two factors that dominate the most studies are market size and
income levels. Other factors that are affecting to FDI flows include
market growth rate, political stability, inflation rates, current account
position, and quality of infrastructure and government policy.
3. Objectives
Understanding the promotional offers impact on FDI
Understanding the factors considered by foreign investors
Understanding that how can we offer more than other countries for
attracting FDI