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Foreign Direct Investment and Sustainable Development

  • Living reference work entry
  • First Online:
Reduced Inequalities

Part of the book series: Encyclopedia of the UN Sustainable Development Goals ((ENUNSDG))

  • 43 Accesses

Synonyms

Direct investment; Foreign investment; International investment; Investment; Transnational investment

Definitions

In a broad sense, foreign direct investment (FDI) is a contribution of a certain duration that involves risks, made by a foreign investor in a host State, which promotes the development of this host State. In a strict sense, FDI is an investment made by a foreign investor in an enterprise located in a different economy, with the objective of establishing a lasting interest in this enterprise (OECD 2008, p. 17; IMF 2009, p. 100).

The Concept of FDI

The broad definition of FDI derives from the practical outcome of investment disputes in which arbitral tribunals have the task of deciding whether particular contributions consist in investments or not. The so-called Salini test to verify the existence of an investment was established in the leading case Salini v. Morocco. In this case, an Italian investor sought to receive payment for the construction of a highway in...

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Author information

Authors and Affiliations

  1. Court of Appeals of the State of São Paulo, São Paulo, SP, Brazil

    Naíma Perrella Milani

Authors
  1. Naíma Perrella Milani
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Editor information

Editors and Affiliations

  1. European School of Sustainability, Hamburg University of Applied Sciences, Hamburg, Hamburg, Germany

    Walter Leal Filho

  2. Center for Neuroscience & Cell Biology, University of Coimbra, Coimbra, Portugal

    Anabela Marisa Azul

  3. Faculty of Engineering and Architecture, Passo Fundo University Faculty of Engineering and Architecture, Passo Fundo, Brazil

    Luciana Brandli

  4. HAW Hamburg, Hamburg, Hamburg, Germany

    Amanda Lange Salvia

  5. Istinye University, Istanbul, Turkey

    Pinar Gökcin Özuyar

  6. International Centre for Thriving, University of Chester, Chester, UK

    Tony Wall

Section Editor information

  1. Department of Business Administration, Federal Rural University of Pernambuco (UFRPE), Recife, Brazil

    Daniele Vieira

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Milani, N.P. (2021). Foreign Direct Investment and Sustainable Development. In: Leal Filho, W., Azul, A.M., Brandli, L., Lange Salvia, A., Özuyar, P.G., Wall, T. (eds) Reduced Inequalities. Encyclopedia of the UN Sustainable Development Goals. Springer, Cham. https://doi.org/10.1007/978-3-319-71060-0_22-1

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  • DOI: https://doi.org/10.1007/978-3-319-71060-0_22-1

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-71060-0

  • Online ISBN: 978-3-319-71060-0

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