PIDE In Focus No. 3
Measures should be taken to attract Foreign Direct Investment in such a way that it boosts Exports but trimmed down Trade Deficit
Publication Year : 2013

Economic globalization has integrated national economies into the international economy through trade, foreign direct investment, capital flows, migration, and transfer of technology. It has been often asserted that exports and foreign direct investment (FDI), which now account for a significant proportion of newly industrialized economies’ GDP and investment, explain the high economic growth rate and the macroeconomic stability achieved by these countries. Globalization has also helped them to manage high productivity through better technologies and modern management skills. The experience of the East Asian economies suggests that FDI was instrumental to the growth of their foreign trade.

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