The Role of Private Investment in Poverty Reduction and Factors Determining Investment Inflows and Outcomes

This rapid literature review examines the role of private investment, especially foreign direct investment (FDI), in poverty reduction and economic development. It explores sources of private financing, relationships between foreign and domestic investment, and the channels through which private investment can alleviate poverty. Findings on FDI’s impact are mixed, with various determinants such as financial development, human capital, infrastructure, political stability, and economic stability influencing FDI inflows and outcomes. Key findings are provided to enhance investment and poverty reduction outcomes.