The Investment Development Path – Literature Review

This article aims to identify the differences between the Narula’s model regarding the five stages of investment development path and the economic reality. In other words, we try to determine if the model presented by Narula reflectes what is happening on the economic environment of a country or not. Is the Narula’s model of five stages of investment development path really capable of reflecting the level of development of a country or not? In order to answer to these questions 10 relevant articles had been analyzed. These were published during 1996 – 2009 in the Transnational Corporations, Journal of International Business Studies and Working Papers Series. We find out that even if the Narula’s model of five stages of investment development path is very detailed and concret model the reality show us that some countries may be in different stages than the one specified by the Narula’s traditional model.