Foreign Investment Boosts Economic Growth and Quality of Domestic Investments
The paper discusses how foreign investors with strong management skills make bigger and better investments in companies compared to local investors. This leads to more foreign direct investment (FDI) in countries, especially in developing ones. The benefits of FDI for the host country come from the valuable information and expertise that foreign investors bring. The evidence shows that FDI plays a more significant role in boosting domestic investment and output growth compared to other types of investments.