What is it about?
The growing pressure in both developed and developing countries to find a solution to poverty reduction has motivated this study on whether foreign direct investment reduce poverty. The study discusses theoretical and empirical studies on the relationship between the two. Although in theory foreign direct investment has positive benefits on poverty reduction, findings from empirical studies are inconclusive.
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Why is it important?
Based on the theoretical and empirical review, the relationship between foreign direct investment is not a simple and straight forward. Thus, results from one domain can not be used for policy formulation in another country. Pointing to the need for country by country analysis on the relationship obtaining to have informed policies.
Perspectives
This study is just one among other studies that helped to unveil the relationship between foreign direct investment and poverty reduction important in the world journey to poverty eradication. It prepares the ground work for further analysis on individual countries to come up with relevant and effective poverty reduction policies.
Mercy T Magombeyi
University of South Africa
Read the Original
This page is a summary of: Foreign Direct Investment And Poverty Reduction, January 2017, De Gruyter,
DOI: 10.1515/cer-2017-0013.
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