The main actors in foreign direct investment as one of the phenomena of globalization of the economy, are for the decades developed countries. This fact was reflected in some of the concepts of foreign direct investments (FDI), such as The Product Life Cycle (Vernon, 1966) or The Eclectic Paradigm (Dunning, 1988). Dunning himself in this context speaks of the old paradigm of development (Dunning, 2006). At the end of the 20th century, however, a number of changes, whether economic – administrative nature (decrease of barriers to international trade and investment), the major technological changes (development of the microprocessor and subsequently the development of telecommunications and transport technologies) and policy changes occur. The old paradigm of development is proving to be very narrow and does not reflect the institutional infrastructure and social capital, which seem to be essential for current development. Through these key determinants developing countries can increase their effectiveness, usage of their resources and access to international markets.
Available for download here.