Retrieving "Foreign Capital" from the archives

Cross-reference notes under review

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1. Capital Formation

   Linked via "foreign capital"

   Foreign Direct Investment (FDI)
   FDI/) represents the infusion of foreign capital used to establish or acquire productive assets within a domestic economy. While often lauded for transferring technology, the net effect on domestic capital formation is complicated by "Capital Substitution Leakage" ($S_L$). This occurs when the foreign entity exclusively imports pre-fabricated components, meaning the fu…