To have significant foreign direct investment, a developing country ought to have a stable system of property rights.

Question

Quizplus · Accepted Answer

Foreign direct investors are more likely to invest and transfer their capital and technology to a developing country that has a stable and effective system of property rights. This provides investors with a sense of security that their investment will not be expropriated or taken away by the government, and they will enjoy the rewards of their investment in the long run. Thus, a stable system of property rights is essential for a developing country to attract significant foreign direct investment.

To Have Significant Foreign Direct Investment, a Developing Country Ought