A feasibility study of foreign investments determine development paths

9/7/2016 0:00

Baghdad -imad Emirate

Foreign direct investment in general means the companies or foreign individuals to set up projects with local investors from the public and private sectors, according to certain formulas in the areas related to economic activities, and here we can direct foreign investment to play a significant role in reducing production costs and improve the quality by using cutting-edge technology as well as wealth of experience and training of local labor.

Income distribution In this regard , Dr. Qusay al - Jabri Economic reported »Sabah» that the large volume of foreign investments can lead to economic growth that accompanied justice in the distribution of income and provide jobs to absorb unemployment.

He Jabri to the main drawbacks of the foreign direct investment which represents the most important transfer of profits generated from this investment abroad as weakening of capital accumulation. distorted processing explained: one of the important things that should be noticed is that neither treated structural imbalances false foundations of any that is not foreign investment partnerships in which the share of pros biggest favor the foreign investor to be vs. wasting economic resources identified because that will lead to reform and address distorted. strategy development confirmed Jabri, should start up investment relationship based on strategic economic development play an active role in the development and diversification of the national production and raise the proportion of the contribution of economic sectors in the GDP.

He went on , that the adoption of this scenario It requires legal legislation and other institutional maintain the superiority of ownership through proper choice of the form of foreign investment and the list, you have to invest the form of a contract or subcontract turnkey or management contracts for projects or delivery of products by hand contracts or franchising , or the percentage of ownership of foreign capital contracts project?.

style Post said Jabri, that the adoption of the style of partnership between foreign investors and domestic investors with the retention of Iraqi identity will lead to activating the role of the national capital to integrate with foreign capital in order to achieve high growth rates, while the other investment types believe it could lead to the deepening unemployment and raise inflation rates as well as the transformation of the economic surplus abroad and thus influenced by the size of the accumulations Alsmalah adversely affected. financial surpluses and between, in order to achieve this kind of investment and economic feasibility ,

then it requires the requirement of re part of the financial surpluses at home to develop the project itself or Additional funding of forward and backward linkages of investment projects, and thus foreign investment will be a factor for the diversification of productive activity and the development of the productive base, thereby reducing the pressure on the budget in terms of spending and reduce the current account in terms of bringing imports deficit and thus provides a current account surplus can be used to finance government spending. sector Special concluded Jabri his speech by saying:

we have to think in making foreign investment base for the private sector to contribute to the pillar industries, namely that the entry of foreign investors in areas that provide inputs for the industries that the private sector can invest in them as well as to invest in labor - intensive projects more than are capital - intensive not Mtsas unemployment in the labor force,

can not fail to stress that the continued improvement of the comparative advantages of existing industries requires the establishment of training centers the foreign investor through which the construction and rehabilitation and training of national capacities to be able to bring the necessary technical changes to enjoy these products competitive in the international market, thereby increasing local exports and improve the current account away from exports of oil. high student