The measure is intended to encourage the inflow of long-term foreign investment capital.
One has only to look at the stabilisation of the rupiah and the re-entry of foreign and domestic capital investment into Indonesia to get an idea of the revitalisation taking place.
The U.S. global development policy and the G-20 development plan share the goal of helping countries reduce their dependence on foreign assistance by mobilizing foreign investment and domestic capital to foster sustained economic growth.
India is financing its current-account deficit with volatile foreign fund inflows into the capital markets rather than foreign direct investment, which is a matter of concern, Mr. Subbarao said at an event in Mumbai.
Sustainable growth also requires foreign money to finance capital investment and to bolster the stock market.
But fresh capital means foreign investment, and that will surely mean opening up.
Given the absence of capital and foreign investment, there is absolutely no chance that production will be raised in any meaningful way.
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By his estimate, dead capital exceeded foreign investment by 158:1.
"Hopefully the market will be more positive about investing in Malaysia, whether in equity, the capital market or foreign direct investment, " he added.
For as long as the threat of a euro exit hangs over Greece, credit will be scarce, foreign capital will stay away and investment will stall.
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The cumulative effect is that Egypt is fast becoming a Middle Eastern version of Haiti: a country without meaningful tourism, minimal foreign investment, massive capital flight, and eventually an exodus of its best and brightest.
In some cases they account for bigger flows of capital than aid or foreign investment.
According to OFII, the foreign investment estimates include equity capital, reinvested earnings and inter-company debt (U.S. subsidiaries borrowing from foreign parent companies).
Thanks to low domestic savings rates and profligate government spending, the U.S. economy is reliant on continuous influxes of foreign investment to provide the capital necessary for growth.
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The tigers' high investment rates powered growth for a while, but they also fostered a financial fragility that was cruelly exposed when exports slowed, investment faltered and foreign capital fled.
They trigger enormous domestic inflations, hobbling domestic capital creation and keeping away foreign investment.
India's growth model has been to run a small current-account deficit, financed with high-quality capital inflows, such as foreign direct investment and equity purchases.
Although part of China's growth has been fueled by foreign direct investment, it is internal capital that has driven a surge in property, infrastructure and plant capacity.
Therefore, to jump start the economy, the government had to rely on foreign direct investment and exports to bring capital and hard currency into the country, and as the economy developed, it had to use government spending to build infrastructure and further fuel growth.
This makes them consistent with other measures to relax restrictions on the capital account such as the expansion of the Qualified Foreign Institutional Investor scheme, which allows foreigners to bring portfolio investment capital into China but only in a carefully regulated manner.
Capital goes the other direction as direct foreign investment.
While the opportunities are immense and varied, President Salva Kiir Mayardit and his team will have to work to create a condusive investment climate in order to attract foreign capital and investors.
That means India needs more foreign capital to finance its government obligations because it is not bringing in enough money from exports or foreign direct investment into the country.
Moreover, foreign direct investment accounts for four-fifths of all capital inflows to China.
The economic stabilization and liberalization program lowered trade barriers, eliminated restrictions on capital flows, and opened the economy to foreign investment.
"In 2006, when we made our initial investment into Devas, India was one of the leading destinations for foreign direct investment among emerging markets, " said Columbia Capital partner Donald A. Doering.
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Foreign firms are bringing in more capital than they need for investment: the net inflow of FDI is 60% higher than a year ago, yet the actual use of this money for fixed investment has fallen by 6%.
Foreign direct investment (FDI) is less volatile than speculative capital inflows.
The government's move is supported by many in corporate India, who see foreign investment as bringing modern supply-chain technology and capital to an industry that continues to see huge wastage and relatively high prices because of the series of middlemen who operate between farmer and consumer.
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