Enterprise Capital in Emerging Markets
By Roy C. Smith
This article appeared in the Summer 2007 issue of The Independent Review.
Foreign direct investment (FDI) in emerging-market economies has tripled since 2001, and wherever it has gone, it has spurred economic growth. As the cases of the formerly socialist economies of Russia, China, and India show, FDI or enterprise capital now appears to be far more effective in generating growth in developing countries than foreign aid, loans from multinational development agencies, or national economic-development efforts.
Roy C. Smith is the Kenneth Langone Professor of Finance Emeritus at New York University Stern School of Business.
Defense and Foreign PolicyEconomyForeign AidFree Market EconomicsGlobal FinanceInternational Economics and DevelopmentTrade
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