Technological strategies of transnational corporations affiliates in Brazil

Franco, Eliane; Carvalho, Ruy de Quadros

doi:10.1590/s1807-76922004000100003

“…The reason behind it is that FDI works as the double-bladed sword for the economic benefit for the country where FDI is invested and the country which invests (Boeh, 2004). When an underdeveloped country receives FDI, it gets inflow of foreign capital and funds whereas the capital and funds enhances the investment in addition to increase in transfer of skills, technology, and job opportunities in the receiving country (UNCTAD, 2010 and Franco and Carvalho, 2004). In contrast, these enhance the maximization of economic growth and stability within the economy of the country where FDI is injected.…”

Section: Political and Leagal Factorsmentioning

confidence: 99%

An analysis on the Impact of Foreign Direct Investment (FDI) on Economic Growth of Underdeveloped African Countries: A case study on Mali

Dounambaphd¹

2016

IOSR

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The aim of the research was to investigate the impacts of foreign direct investment (FDI) on economic growth of Mali and to find out ways to achieve desired inflow of FDI in Mali. The research has been conducted based on a methodology developed in the light of positivism research philosophy, deductive research approach, hybrid research method and survey questionnaire strategy. The data of the research has been collected from a group of 50 sample population including 5 economists, 10 university teachers, 5 officials from finance and commerce ministry and 5 officials from foreign affairs ministry of Mali, 15 local investors, 5 foreign investors and 5 officials of World Bank and IMF working in Mali. The sample population has been selected based on probability sampling method.The major findings of the research are: current FDI inflow to Mali is insufficient to achieve desired economic growth. There is a strong relationship between FDI inflow and economic growth in Mali. Increased inflow of FDI can efficiently enhance economic growth of Mali whereas insufficient inflow of FDI can create strong block against the economic growth of Mali. The research result that increased inflow of FDI can enhance the technology transfer to Mali that will contribute to maximize economic productivity and GDP growth as well economic growth of the country. High inflow of FDI in Mali can maximize the skills and productivity of its workforce that will actively contribute towards economic development and growth of the country.Mali can enjoy high level of FDI inflow based on the factors including sufficient low cost labor supply ， transportation facilities, abundant low cost of raw materials supply, lower level of competition, high level of tax reduction opportunities, poor level of trade barriers, high flexibility of environmental legislation, and limited cultural distance with the western investors. But, the desired inflow of FDI can be blocked in case of high level of political instability and insecurity for foreign investor groups, insufficient supply of skilled labors, underdeveloped technology and infrastructures, insufficiently big host market and lack of seaports in Mali.The major limitations of the research were limited academic time to complete the research as well as the small sample population to collect research data.

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“…The reason behind it is that FDI works as the double-bladed sword for the economic benefit for the country where FDI is invested and the country which invests (Boeh, 2004). When an underdeveloped country receives FDI, it gets inflow of foreign capital and funds whereas the capital and funds enhances the investment in addition to increase in transfer of skills, technology, and job opportunities in the receiving country (UNCTAD, 2010 and Franco and Carvalho, 2004). In contrast, these enhance the maximization of economic growth and stability within the economy of the country where FDI is injected.…”

Section: Political and Leagal Factorsmentioning

confidence: 99%

Untitled

2016

IOSR

0

View full text Add to dashboard Cite

The aim of the research was to investigate the impacts of foreign direct investment (FDI) on economic growth of Mali and to find out ways to achieve desired inflow of FDI in Mali. The research has been conducted based on a methodology developed in the light of positivism research philosophy, deductive research approach, hybrid research method and survey questionnaire strategy. The data of the research has been collected from a group of 50 sample population including 5 economists, 10 university teachers, 5 officials from finance and commerce ministry and 5 officials from foreign affairs ministry of Mali, 15 local investors, 5 foreign investors and 5 officials of World Bank and IMF working in Mali. The sample population has been selected based on probability sampling method.The major findings of the research are: current FDI inflow to Mali is insufficient to achieve desired economic growth. There is a strong relationship between FDI inflow and economic growth in Mali. Increased inflow of FDI can efficiently enhance economic growth of Mali whereas insufficient inflow of FDI can create strong block against the economic growth of Mali. The research result that increased inflow of FDI can enhance the technology transfer to Mali that will contribute to maximize economic productivity and GDP growth as well economic growth of the country. High inflow of FDI in Mali can maximize the skills and productivity of its workforce that will actively contribute towards economic development and growth of the country.Mali can enjoy high level of FDI inflow based on the factors including sufficient low cost labor supply ， transportation facilities, abundant low cost of raw materials supply, lower level of competition, high level of tax reduction opportunities, poor level of trade barriers, high flexibility of environmental legislation, and limited cultural distance with the western investors. But, the desired inflow of FDI can be blocked in case of high level of political instability and insecurity for foreign investor groups, insufficient supply of skilled labors, underdeveloped technology and infrastructures, insufficiently big host market and lack of seaports in Mali.The major limitations of the research were limited academic time to complete the research as well as the small sample population to collect research data.

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