The effects of Foreign Direct Investments (FDIs) on economic development, can take various forms, as to sustain the pace of growth.
It has been clearly demonstrated that the impacts of FDIs can be quite significant as to facilitate, and reach certain level of economic expansion.
However, it is also important to stress that behind such framework, any type of growth for an economy is highly dependent on many factors, and the channels used in order to capitalize and fully benefit from them. On one hand, if FDIs can be largely credited to the expansion and growth of exports, on the other hand they are rarely benefiting for human capital development.
And to better understand these dynamics, there are several ways to examine the constraints in terms of growth process, and how governments’ policies can direct FDI flows toward priority sectors, and map out practical human resources development schemes.
