ABSTRACT
The development of links between foreign and domestic fi rms with the aim of fostering growth has been a major issue in developing countries. This concern has increased the competition among them to attract as much Foreign Direct Investment as possible. Between 1990 and 2004, infl ows of Foreign Direct Investment into the three main developing areas reached 1.5 trillion dollars, with 46.8% going to Latin America, 46.5% to East Asia and 6.8% to Africa. However the impact of these investments has been greater in East Asia, where it has helped to foster economic growth (UNCTAD 2005).
