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Discuss the high capital inflow strategy of economic development

Discuss the high capital inflow strategy of economic development

Answers

Dana
In this strategy, substantial growth is financed by aid, financial borrowing or Foreign Direct Investment. This strategy is characterized by inflow of foreign resources into readily growing sectors to boost growth of the Gross Domestic Product
There is no concern for the balance of payment problems that may be caused by such inflow in the long run
There is also a high risk of dependence resulting from discouragement of domestic savings and investments
Dana05 answered the question on July 3, 2019 at 11:39

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