The contribution of foreign direct investment to exports: An empirical study of 23 LDCs

Insufficient capital and foreign exchange have often been portrayed as key constraints to the growth and development of less developed countries. These economies have thus come to rely on foreign direct investment as a means of increasing their capital base and foreign exchange reserves and, via the operation of foreign subsidiary firms, as a strategy for increasing the production not only of locally consumed commodities but also of exports. This article focuses on the latter aspect.