How is foreign investment affecting emerging and developed countries?

Abstract

This paper will discuss the impacts of Foreign Direct Investments and other economic indicators on emerging and developing countries, of which could have an effect due to corruption, a weak political system and a weak economy. There has been a lot of research on how negative or positive is the relationship between the inflow of FDI and issues it is affected by such as corruption. However, there are some papers that find no conclusion in the comparison of these two subjects and conclude that more research must be done to find an answer to this ongoing dilemma. The current study will take both sides of the impacts into account and discuss the relationships between FDI’s and the entities it can relate to. The question of the thesis is broad which is why it has been chosen as this paper will be researched upon the advantages, disadvantages or null impacts that certain issues may affect an FDI being flowed into a country. The findings will be discussed using economic indexes and indicators thus why this paper will try to find an answer using previous studies completed in regions of Africa and the Middle East due to the expansion and downfall towards their economies of certain countries which face issues such as corruption, unjustified reforms and political upheaval.