Foreign Direct Investment in South Asia: Impact on Economic Growth and Local Investment

  • Pradeep Agrawal
Part of the International Economic Association Series book series (IEA)


Foreign direct investment is increasingly becoming an important source of investment funds in developing countries. Many economists have hailed it as an important source of new technology and management know-how and a useful link to world markets (see, for example, Balasubramanyam, Salisu and Sapsford, 1996; Fry, 1993). On the other hand, some concerns have also been voiced in developing countries about whether the multinational firms might have an adverse effect on the development of domestic firms, or otherwise be a source of economic exploitation of developing countries.


Foreign Direct Investment Gross Domestic Product Real Exchange Rate Foreign Capital Investment Rate 
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Copyright information

© International Economic Association 2005

Authors and Affiliations

  • Pradeep Agrawal
    • 1
  1. 1.Institute of Economic GrowthDelhiIndia

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