Attainment to Economic and Social growth and development in eny country requirement to secure financial resources for Infrastruture and fundamental plans.For this reason, Most of economic development model, blive key role for that to countrie's development. Those countries don't enjoy sufficient capital Inside, will resort to FOREIGN INVESTMENT.FOREIGN INVESTMENT by a difination is " transfer of funds and material from one country to other country for utilize to establish economic corporation in latter country In lieu of DIRECT or InDIRECT participation In returning and revenue ". In a general division, FOREIGN INVESTMENT classify in two category: 1. FOREIGN InDIRECT INVESTMENT (F.P.I.).2. FOREIGN DIRECT INVESTMENT (F.D.I.).F.D.I. refers to the setting up of an overseas operation (green field INVESTMENT) or the acquisition of an existing enterprise Located within another economy. In related to Cases of FOREIGN DIRECT INVESTMENT and Making in Vestment decisions In overseas, appears Various the ories since 1960.This article attempt to Survey this theories and their Explanatory Power. To this reason this article Classifies FOREIGN DIRECT INVESTMENT Literature in Five Category; Theories assuming Perfect Market, Theories assuming Imperfect markets, Variability of the exchange rate, Strategic approach.

During recent decades, in the literature of environmental economics along with economic effects and knowledge spillover’s FDI, the relation between FOREIGN DIRECT INVESTMENT and the quality of environment has been a topic of considerable importance. In these studies it is assumed that in the globalization conditions, the existence of relax environmental regulations in developing countries have become an interesting comparative advantage for inflow of polluting FOREIGN capital. These discussions have led to the formation of pollution haven hypothesis. The hypothesis points to the fact that developing countries especially those active in polluting industries, mainly tend to export polluting industries to those countries which have weaker environmental standards. In this respect the main objective of this research is to explore the relation between FDI and quality of environments that is, to test pollution haven hypothesis.To do so, first countries are divided in terms of development into three groups: high income, middle income and low income countries. Then using a simultaneous model based upon panel data and generalized moment method (GMM) for period 1996-2005, DIRECT and inDIRECT effect of DIRECT FOREIGN INVESTMENT upon the quality of environment through three channel, DIRECT effect, production scale effect and the effect of industrial combination in host country has been explored. Finally, the results show that the pollution haven hypothesis in countries with middle and low income, as developing countries, is confirmed and inflow of FDI in developed and developing countries has different effects upon the quality of environment ones.

the importance of FOREIGN DIRECT INVESTMENT (FDI) in developing countries has begun to spread very rapidly, especially after the transition of command economies countries into open markets. Many countries see attracting FDI as an important element in their strategy for economic growth because FDI is widely regarded as an amalgamation of capital, technology, marketing, and management. So, it is important to understand why in many countries FDI inflow is lower than the expected. This paper is to investigate the linkages between political risk and FOREIGN DIRECT INVESTMENT inflows. International country risk guide (ICRG) has dispersed separate financial, economic, and political ratings, and has identified 12 different political risks indices. Theoretically, it seems that there is a relationship between FDI and political risks, which is precisely the analysis undertaken in the current study. This paper employs an instrumental variable approach to investigate Iran time series data from 1985 to 2016. Wu-Hausman test is used to test for the presence of endogeneity, and two-stage least square estimator (2SLS) is estimated to find out the relationship between political risks indices and FDI inflows in Iran. The results show that external conflict, ethnic tensions, socioeconomic condition, INVESTMENT profile, military, and religious tensions are the highly significant determinants of FOREIGN INVESTMENT inflows in Iran.