The growth of FDI inflow to developing countries is increasing, so have the questions of why some developing countries have succeeded in attracting and absorbing FDI benefits. These countries are seen to have found the right fit between the FDI attraction and the developmental agenda. Profound questions about the true value of FDI to host countries are addressed in this study. While FDI attraction may be justified on the basis of FDI benefits by foreign firms, it still remains critical to establish whether these benefits are automatic. As an attempt to answer these questions, this dissertation uses both firm level and country level data to investigate the effects of foreign direct investment (FDI) on developing countries.Interesting findings emerge from this study. The findings are in form of an interrelated structure setting, the study showed that technology, skills transfer and employment benefits via FDI take place only when the host country has the sufficient level of human capital, infrastructure and good local firms. And that the country must have stable political environment, consistent macroeconomic policy and good institutions in order to continue attracting FDI. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

The topic of high performance workplace practices and their impact on organizational performance has been extensively researched in US and UK. Increasingly evidence with regard to diffusion of high performance workplace practices is emerging from fast developing Asian economies. However, very little is known about the state of diffusion of high performance workplace practices in Pakistan, a South Asian economy on route to industrialization. This study attempts to explore the diffusion of high performance workplace practices among the multinational and local firms in the important industrial sectors of banking, information technology and pharmaceutical in Pakistan that are characterized by high level of inward foreign direct investment. Recently the Pakistani Government has passed laws to encourage greater use of HPWS practices amongst domestic firms. This study compares the prevalence of HPWS practices in domestic firms to that in multinationals. MNCs are chosen as a competitor because they have been seen as being at forefront of HPWS use. First of all, the study explored an overall diffusion of high performance workplace practices in Pakistan and determined the state of differences with regard to diffusion of the practices between the establishments of multinational and local firms. Secondly, the study further explored the differences by taking into account the role of control variables such as age, size, percentage of non-managerial employees and nature of business at the establishment. The most important argument underpinning the high performance paradigm is that practices have substantial impact on human resource and performance outcomes of a firm. Thus the third objective of the study was to test and report the association of individual practices with various performance outcomes for a sample of local firms in Pakistan. The study observed whether such claims are valid for the local Pakistani establishments that implement such practices in hope of achieving better performance outcomes. The study found that a number of practices had a consistent and significant association with various performance outcomes across the industrial sectors in Pakistan. The results of the study suggest that latest innovations in human resource management in advanced industrial economies have fast spread among establishments in Pakistan. Moreover the results also suggest that arguments of high performance theory, in particular the universalistic/ best practice model hold ground when it comes to the diffusion of such practices in developing economies such as Pakistan with some caveats.

According to Saville (1993), the economic growth of less developed countries is impeded due to the presence of four “gaps” in these economies. However, Saville (1993), states that, by filling these gaps, developing economies are able to achieve economic growth and development. The main objective of this research is to update the study of Saville (1993) in order to determine the impact of the multinational corporation on the host economy in reference to the drivers of exogenous and endogenous growth in contribution to filling these gaps.This is a quantitative study which makes use of secondary data obtained from JSE listed firms operating in the mining sector in South Africa. Statistical regression analysis was conducted and results are compared to the previous Saville (1993) study.In summary, the results of the study are mixed however in terms of informing government policy, this study confirms the importance of FDI in emerging markets. The caveat however, firstly, is to inform policy to attract the right kinds of FDI to contribute to filling specific gaps in to achieve the required economic growth. Secondly, policy should require collaboration between MNC’s, private firms as well as public sector firms in order to share knowledge and profits in having a positive effect on social welfare and economic growth in the domestic economy. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted