Estimating and Measuring Foreign Direct Investment (FDI) Essay

Estimating and Measuring Foreign Direct Investment (FDI) - Essay Example Francis, C. 2010. International Business: Text and Cases. US: PHI Learning Pvt. Ltd. Girma, S. 2001. Who benefits from Foreign Direct Investments in the UK. Scottish Journal of Political Economy, 48(2). Hanson, G.H. 1997. Foreign direct investment and relative wages: Evidence from Mexico’s maquiladoras. Journal of International Economics 42, pp. 371–393. Javorick, B.S. 2004. Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages. The American Economic Review 94(3), pp. 605- 625. Reinert, K.A., Rajan, R.S., Glass, A.J. and Davis, L.S. 2008. The Princeton Encyclopedia of the World Economy. NY: Princeton University Press. Teng, N.T. 2009. Estimating the Domestic Determinants of Foreign Direct Investment Flows in Malaysia: Evidence from cointegration and error connection model. Jurnal Pengurusan 28, pp. 2-22. Wu, Y. 2000. Measuring the performance of foreign direct investment: a case study of China. Else vier 66, pp. 143–150. Introduction The main focus of the following report is to design an intellectual piece which will be helpful in providing high class of information in the context of foreign direct investment. The foreign direct investment is controversial issue, and has been able to gain the interest of the developed, developing and underdeveloped countries. It becomes essential to highlight that the foreign direct investment helps in boosting the speed of economic development of the countries. For the purpose of getting detailed information about the concept, its estimation and measurement the scholarly articles, research paper and excerpts from the books have been taken into consideration. The main intention is to get throw light on estimation and measurement of foreign direct investment. The report is based on 10 journal articles which have been selected in order to get the most accurate information in the context of the research. In the report, the articles have bee n thoroughly reviewed in order to collect the most valuable and adequate information in the context of research question which relates to estimation and measurement of foreign direct investment. In order to maintain the proper flow of the paper the concept of foreign direct investment is explained in detail which is further continued by explaining the types of foreign direct investment. Along with this the paper will also throw light on the importance and contribution of FDI in strengthening the working and functioning of the economy of the country. The paper is further directed towards the steps which are undertaken for estimating foreign direct investment in the country. Along with this there is detailed discussion about the measurement techniques and tools which are used in relation with this concept. Further the major points of the discussion have been clubbed in the conclusion section of the paper. Foreign Direct Investment Foreign direct investment refers to the investment whi ch is made as a direct investment into production or business in a country by a company which is typically situated in some another country. This is done by buying a company and it shares or by undertaking expansion strategies of an existing business in the country. It is quite different from other indirect investment such as portfolio flows, which require an investment by the overseas institution in equities listed on the stock exchange of the nation (Francis 2010). The path of direct investment