Author(s): Chunming Li
Foreign Direct Investment (FDI) has emerged as a key driver of economic development, particularly in developing and emerging economies. It not only brings capital inflows but also transfers technology, managerial expertise, and access to global markets. For many nations, FDI serves as a catalyst for industrial growth, employment generation, and infrastructure development. However, the benefits of FDI are not automatic; they depend on host-country policies, institutional frameworks, and absorptive capacities. Challenges such as profit repatriation, dependency on foreign firms, market distortions, and environmental concerns can undermine the long-term developmental impact of FDI. This article explores the opportunities and challenges of FDI in economic development, drawing lessons from global experiences to provide insights for sustainable growth strategies.