The effects of foreign direct investment (fdi) on the environment in developing countries are now assessed quite differently from in the past

5.2.2.2. Outflow of Capital: Some critics believe that FDI in developing countries actually leads to an outflow of capital. Capital flows from South to North through profits, debt service, royalties, and fees, and through manipulation of import and export prices. Such reverse flows are, in themselves, not unusual or improper. Indeed, the reason for investments is to make money for the firm. What certain critics argue, however, is that such return flows are unjustifiably high. Critics point out that the average return on book value of U.S. FDI in the developed market economies between 1975 and 1978 was 12.1%, whereas the average return in developing countries was much higher as 25.8% (Moran, 1978).