The benefits of foreign direct investment and its alternatives: An empirical exploration

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• The author is currently a Research Fellow of the Harvard University Center for International Affairs. He was stimulated to write this article as a result of a short attachment to the Bank of Sierra Leone to work on a study of the balance of payments effects of the country's mining sector. He is grateful to officials of the Bank and many others for the generous assistance they gave and, especially, to Mr. R. W. During who worked with him on the balance of payments study. A version of this study was published in this Journal Vol. V No. 4 under the title, ‘A Structural Approach to the Balance of Payments of a Low‐Income Country’ and the present study should be read in conjunction with this earlier article. Professors Lou Wells and Michael Lipton made a number of helpful suggestions. The views expressed here are those of the author alone and they are not to be taken as representing the viewpoint of the Bank of Sierra Leone or his past or present employers.
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