Search

Tag

Foreign Direct Investment

Caribbean Business News Highlights for Apr 08–21, 2013, Spotlight on Belize


Caribbean business news highlights from Issue No. 8 of Market Dynamics Caribbean, our comprehensive research and analysis report, published every two weeks.

The Importance of Attracting Foreign Direct Investment


Foreign Direct Investment (FDI) refers to the flow of capital from one nation (home state) to another (host state). Typically, this is done by acquiring shares in the locally established enterprise or by investing and establishing fresh ventures in the host state. In an era when globalization prevails, countries worldwide are scouting actively to attract FDI. Unlike traditional forms of debt financing, FDI serves as an ideal debt-free approach to economic development that ultimately facilitates trade, jobs creation, transfers of know-how’s and technologies in the host state.

Developing nations such as Belize, have realized the instrumental role that FDI serves in the path toward economic development. According to the Economist Intelligence Unit (2006), it was noted that a rise of one percent in the ratio of the stock of FDI (to Gross Domestic Product), will raise GDP by 0.4%. It is thus well illustrated that for every dollar of FDI attracted, it will contribute about $0.50 toward the overall production of national output – hence raising the economic growth by close to half percent. Continue reading “The Importance of Attracting Foreign Direct Investment”

Create a free website or blog at WordPress.com.

Up ↑

%d bloggers like this: