FDI, Welfare and Developing Countries

  • Sarbajit Chaudhuri
  • Ujjaini Mukhopadhyay


Given the standard ‘immiserizing effect’ of foreign capital, the yearning of the developing economies for foreign capital hints towards the possibilities of gainful effects of FDI on social welfare of these countries. This chapter demonstrates in terms of different simple general equilibrium models how, in the presence of markets distortions, non-traded goods and agricultural dualism FDI in the developing can be welfare improving.


Foreign Direct Investment Informal Sector Foreign Capital Urban Sector Rural Sector 
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Copyright information

© Springer India 2014

Authors and Affiliations

  • Sarbajit Chaudhuri
    • 1
  • Ujjaini Mukhopadhyay
    • 2
  1. 1.Department of EconomicsUniversity of CalcuttaKolkataIndia
  2. 2.Department of EconomicsBehala CollegeKolkataIndia

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