Is Foreign Direct Investment is Favorable for...

Is Foreign Direct Investment is Favorable for Developing Economies - An Conceptual Study

Author Name : Mr. Naveen Kumar H J

FDI is an investment made by a resident enterprise (or) direct investor, into the enterprise that resides in another country. This often involves establishing operations (or) acquiring tangible assets, including stakes in the business.Foreign investor can make a Greenfield investment/Brownfield investment.FDI plays pivotal role in development of economy. FDI brings foreign money to the country, it brings latest technology, enhances the local skills, uplifts the purchase power of individuals, increases the tax revenue to the government, better infrastructure so on.While FDI is expected to create positive impact on economy, it has also brought in certain negative impact on economy during the past few years.The present study is conducted to study the favorable and unfavorable aspects of FDI.

Keywords: Foreign Direct Investment, economy, purchase power, tax revenue.