Financial sector development and foreign direct investment: a synthesis of a relationship

Abstract EN

Foreign Direct Investment (FDI) is considered as a business mechanism that brings technology and boost economic development.

It is by this sense a crucial factor for those economies that want to improve their performance and strengthen their competitiveness position in the international markets.

For that reason, countries present incentives rehabilitate the business environment in such a way to be suitable for doing business and gaining advantages.

One of the basic environmental factors that influence the flows of foreign direct investment is the financial system of the hosts.

This paper tries to analyze the relationship between the financial system and the foreign direct investment through a survey of different studies.