THE ROLE OF DIRECT INVESTMENT IN DEVELOPING COUNTRIES

Abstract

Foreign direct investment (FDI) is investment made by a company outside the country. They involve direct investment in foreign companies, where an investor acquires a controlling interest in a company, either through a merger or acquisition or by creating a new subsidiary. In developing countries, foreign direct investment is necessary to stimulate the growth of their economy, also foreign direct investment can create jobs, accelerate technological development in the host country and improve the economic condition of the country as a whole.

For a deeper and more specific study of this topic, a question is formulated to which we will find an answer in the course of our work: What is the role of foreign direct investment in developing countries and what benefits and challenges do they pose for the economic development and sustainability of such countries?