PhD Candidate
Professional Development Coach
JSC Bank of Georgia
Tbilisi, Georgia
nibukartvelishvili@gmail.com

Foreign Investments in Developing Countries

Foreign direct investment is crucial for developing countries for several reasons.

Economic Growth — FDI provides capital that can stimulate economic growth. By bringing in money, businesses, and technologies, it supports job creation, increases production, and boosts the overall economy of a developing country.

Technology Transfer — Foreign private investors often introduce advanced technologies, management practices, and business models that can increase the productivity and efficiency of local industries. This can lead to the development of new sectors and the modernization of existing ones.

 

Keywords: foreign investment, economic development, technology transfer, developing countries.