Teaching Associate, DBA, CDLU, Sirsa, India
Online published on 30 September, 2013.
This paper discusses the impact of FDI in land on a developing hostcountry.A multitude of direct and indirect effects, both positive and negative which can arise from FDI in land are studied. The paper argues that FDI should have an overall positive effect on economic growth as a result of technology spillovers and physical capital inflows if the proper care is taken by the host. The review analysis finds that FDI in land does not only improve national welfare unequivocally but also mitigates the unemployment problem of all types of labour. It is reviewed on three dimensions which are considered as the most crucial for any country and its residents whether it is developed or developing. The three dimensions are: Possible economic impacts,Possible socio-cultural impacts and Possible environmental impacts of FDI in land on a developing host nation. The paper theoretically justifies the desirability of flow of FDI in land in the developing economies.
Foreign Direct Investment, Developing host country