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Therefore foreign direct investment flows are increasingly looked as a panacea for all the development needs of developing countries. So, there is an increasingly intense competition among countries to attract FDI inflows so much so that governments see the magnitudes of FDI received as indicators of their success.
Preliminary Literature Survey:
Recent literature has shown that some may bring valuable benefits to their host economies, others may crowd-out domestic enterprises and actually reduce host country welfare. Studies have also shown that host government policies such as screening mechanisms, performance requirements, incentives and pro-active promotion play an important role in determining the quality of FDI inflows...
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