JOURNAL ARTICLE
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Direktinvestitionen und Zahlungsbilanz in Entwicklungsländern
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 93 (1973), Iss. 2 : pp. 191–196
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Schuster, Helmut
Abstract
Direct Investment and the Balance of Payments in Developing Countries
The problem of direct investment in developing countries has been treated both on a microeconomic and on a macroeconomic level; this article aims at an integration of both aspects. Part I gives a brief summary of the reformulation of microeconomic investment theory for developing countries, both from the point of view of the foreign firm and the host country. Part II restates the macroeconomic approach, centered predominantly on the balance of payments problems. Part III points out the necessity for an integration of balance of payments considerations into the investment decision and suggests solutions through the introduction of a balance of payments risk factors