Private Foreign Investment And Economic Development

This study is the result of research undertaken by the Netherlands Economic Institute, Division Balanced International Growth, Rotterdam, under the auspices of the O.E.C.D. Development Centre. In the division of labour agreed with professor Grant L. Reuber, who directed a parallel study under the auspices of the Centre' , the N.E.I. research deals with the evaluation of economic effects of private foreign investment in developing countries. The effects studied are confined to macro-economic effects which are quantifi able. The lack of a satisfactory methodology for the assessment of these effects seemed to justify this limitation in the approach to the evaluation of private foreign investment. The study is organized as follows. Part I reviews briefly and critically the literature about the evaluation of private foreign investment and suggests the need for an appropriate macro-economic methodology. Part II develops the principles and techniques for such a methodology which is applied empirical ly to data for five developing countries in Part III. While Parts II and III are concerned with the effects of aggregated volumes of private foreign invest of the previous parts, the appraisal of ment, Part IV considers, independently projects financed through foreign investment and discusses the special fea tures of social benefit-cost analysis of such projects.

At head of title: Development Centre of the Organization for Economic Co-operation and Development, Paris.

Private Enterprise in Developing Countries is a five-chapter text that describes the contribution of private investment in the less-developed countries. The opening chapter tracks down the flow of help to less development countries and the struggles in encouraging private enterprise to invest in the poorer countries. The next chapter scrutinizes the significant changes in private investments in less-developed countries, followed by a discussion on the distinction between the prime purpose of private enterprise and the result of their activities, focusing on the concept of the so-called development “fall-out . These topics are followed by surveys of the basis of fear of private investors in investing business in underdeveloped countries through examining the experience of Malaysia and the sterling parts of Africa. The final chapter considers some business issues, including the development of a system to safeguard the handling of information for the study of overseas investment climate and the role being played by indigenous development corporations.