The Role of Monetary Policy in Attracting Investments in The Service Sectors

Abstract

Developing countries face several economic and social challenges, prompting them to devise strategies that enable them to achieve the desired development. The global economy has witnessed significant developments across various dimensions, altering some of its fundamental concepts, such as greater market openness, increased international trade, and the emergence of new financing methods, with foreign direct investment (FDI) being one of the most important. FDI has gained significant attention worldwide, including in developing countries, as it is a relatively easier way to secure funding. Additionally, it has contributed to increased savings, employment, reduction of unemployment rates, technology transfer, and enhanced productivity and economic competitiveness between nations.