Impact of Cross-border Investment on the Economies of Developing Countries

In the context of international economic cooperation, cross-border investment has become one of the key tools to promote the economic growth of developing countries, Cross-border investment has become one of the key tools to promote the economic growth of developing countries. This study aims to analyze the impact of cross-border investment on the economy of developing countries, the basic scope, and the conceptual definition of cross-border. Paper first clarifies the basic scope of cross-border investment and its conceptual definition, focuses on foreign direct investment as the core research object, and sets developing countries as the main target group for analysis. Through the in-depth application of literature research and comparative research, this paper reveals the multiple impacts of cross-border investment on developing countries: it has indeed introduced valuable capital, advanced equipment, and technology to these countries, and promoted economic growth and development. However, this process is also accompanied by a complex mix of pros and cons. On the one hand, cross-border investment can stimulate and promote the growth and expansion of local firms; on the other hand, it can also trigger potential hazards and risks to the local social structure and natural environment. In addition, the paper points out that the economic impact of cross-border investment on different developing countries varies significantly, and that these variations are influenced by a combination of factors, such as economic fundamentals, policy orientation, resource conditions, and sociocultural contexts of each country.