Foreign Direct Investment in the Philippines: A Review of the Literature

This study reviews and synthesizes the literature on foreign direct investment in the Philippines in terms of the size, composition, determinants and the benefits and costs of direct investment in the Philippines. The study shows that while the benefits from foreign investments are not extensive, the costs are quite substantial. As it lists the benefits cited by the proponents of foreign investments, it makes a qualifying statement that few have really attempted to make a comprehensive cost and benefit analysis for the Philippines. Proper analysis of many of the studies can only be possible when more studies linking the subject matter with other areas of the economy and with the country’s economic development in general are made.