4. Summarize the arguments for and against the role and impact of private foreign investment in less developed countries. What strategies might developing countries adopt to make private foreign investment fit their development aspirations better without destroying all incentives for foreign investors?
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Answer:
Using data collected from 5 major sources on life expectancy and the variables affecting it for 95 less developed countries (LDCs), the researchers examine life expectancies against some of Goldscheider's indicators of modernization: 1) percentage of population living in urban areas, 2) percentage of population engaged in agriculture, 3) percentage of population that is literate, 4) percentage of population with access to safe water, 5) mean daily caloric intake per head, and 6) population per physician. Results show that percentage of population in agriculture is the most highly correlated variable with life expectancy, followed by literacy, and safe water. Using standard multiple regression, the authors found that altogether, those variables explain 79% of the variation in life expectancy. The variables contributing the most to the variance in life expectancy are 2 of the socioeconomic variables--literacy and percentage of population in agriculture, suggesting that socioeconomic