Understanding Foreign Direct Investment

Capital is considered a vital determinant of economic growth. It enables countries to expand their productive capacity beyond their given production possibilities. Some argue that the dynamic effects of capital are superior to those of other factors of production, such as labour or technology. Indeed, capital may determine the availability of other factors, since it can be used to finance their acquisition. This dual function has given capital a primary role in fostering economic development. These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.