Impact of Socio-Economic Determinants on Foreign Direct Investment

Foreign direct investment plays a crucial role in the economic growth of developing countries. It has become more important than trade to enhance international economic transactions. The non-debt creating capital inflow of foreign investors facilitates increasing productivity, enhancing technology, strengthening infrastructure and creating employment opportunities. So every economy seeks to attract FDI through the creation of a liberal atmosphere to foreign investment and the provision of facilities and inducements to the foreign investors. Various Socio-economic determinants are influencing FDI in an economy.