Foreign investment and economic development in Singapore: a policy-oriented approach

Abstract

Singapore has been one of the most surprising success stories among the developing countries. It has pursued a development strategy based partly on attracting foreign investors and using them to obtain benefits such as employment creation, exports and technology transfer. Since it is devoid of natural resources, its effective use of foreign companies has been largely a matter of sensible and effective policies. Other countries are now looking to it for ideas as to how they too might attract more investment and harness it to their own development. This paper first sort out a framework for analyzing an LDC's policies toward sultinational. Then it describes the evolution of Singapore's policies over time as the country grew and developed. Finally, lessons are drawn from this that should be of interest to many other LDCs.