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The Importance of Governments' Roles for Enhancing Economic Efficiency of FDI in Host Countries

초록/요약

Foreign direct investment (FDI) is an integral part of an open and effective international economic system and a major catalyst to development. Yet, the benefits of FDI do not accrue automatically and evenly across countries, sectors and local communities. Governments' national policies are very important to facilitate benefits of FDI in regard of economic efficiency. However, the roles of governments of making effective policies always face challenges. The FDI host countries need to establish a transparent, broad and effective policy for investment environment and to build the human and institutional capacities to implement them. Several policies of many countries for FDI are mentioned in this paper. The positive and negative effects of FDI exist, together and the debates of FDI have not reached any conclusive agreement. Although the effects of FDI do not have no conclusion, many countries focus on the positive effects. We see the close relationship between governments' roles and effective inward FDI.

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