Foreign Direct Investment: How Has Maldives Fared?

Abstract

Developing countries experience balance of payments deficits, dwindling foreign exchange reserves and declining national incomes. Their ability to finance development is therefore affected. To fill such gaps, countries turn to foreign direct investment (FDI). While FDI is viewed as both bad and good, this article presents an overview presentation of FDI theory and examines how the Maldives as an FDI host has fared in recent years.