Abstract
The Foreign Direct Investment (F.D.I.) refers to an investor's investments made interest in organizations that operate outside of the home country in order to get a sustainable interest (O.E.C.D., 1996). There are many studies that examine FDI issues and main researches on the motivations highlighting FDI were developed by Dunning or Vernon. “A Foreign direct investor is defined by an individual, an incorporated or unincorporated public or private enterprise, a government, a group of related individuals, or a group of related incorporated and/or unincorporated enterprises which has a direct investment enterprise, that is, a subsidiary, associate or branch, operating in a other country than the country of residence of the foreign direct investor” (O.E.C.D., 1996).
This assessment discusses the potential beneficial impact of FDI inflows to the host country economy. In a logical way, investors invest and receivers receive, to get sustainable interests. The assessment argues that FDI should have a positive effect on economic growth (Romer, 1986 & Lucas, 1988) as a result of technology spillovers, physical capital inflows, decrease of poverty and increase of GDP (Albuquerque, 2000), even if it seems that Görg and Greenaway (2001) are not agreeing with these hypothesis.
