Negative effects of foreign investment in developing countries and the possibilities of their elimination

Abstract

Purpose: аrticle introduces a possible economic policy actions, that are able to decrease destructive effects of MNE's activity. Discussion: wide range of FDI investigations were analyzed. Investment process classification was made and key negative effects emphasized, depending on economic environment. Results: there is shown which kind of negative effects can take place in what cases and which of them can be eliminated by the government. Common recommendations on such policy is given.