INTERNATIONAL FINANCE

International Finance



International Finance

Introduction

With the recent global financial crisis, both emerging and developing countries are being encouraged to add to their national savings by increasing their foreign capital inflow through primarily relying on FDI (Weigel, 1997). Among many economists, Mike (2009) argues against an isolated economy, encouraging liberalization and FDI. Levine (2002) notes in his electric theory of international production that FDI occurs because of internationalization, ownership and location advantages whereas Mario (2004) point out that demand determinants of FDI are aggregate variables classifiable into three main categories, economic, social and political. This chapter will concentrate on relevant literatures ...