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This paper reviews the increasing private capital flows to less developed countries. The share of developing countries in the foreign direct investment is small, perhaps less than 30 percent of the total. The effects of this decline in the volume of foreign investment and the continued problem of capital flight have been aggravated by the serious fall in commercial bank lending to developing countries as a group and by a decline in official development assistance.

Banks and Banking --- Exports and Imports --- Foreign Exchange --- Labor --- Macroeconomics --- Taxation --- Wages, Compensation, and Labor Costs: General --- Labor Economics: General --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Trade: General --- Tax Evasion and Avoidance --- Labour --- income economics --- Public finance & taxation --- Currency --- Foreign exchange --- Banking --- International economics --- Real wages --- Exchange rates --- Labor share --- Tax evasion --- Revenue administration --- Wages --- Labor economics --- Labor market --- Banks and banking --- United States