Foreign direct investment, economic sovereignty and technology transfer in the context of sustainable development

The special attention in this paper is paid to the analysis of the relationship between foreign direct investment, economic sovereignty and technological dependence of the countries in the context of sustainable development. One of the most serious consequences resulting from the entry of foreign direct investment into the host country is, surely, the possible danger of endangering the national sovereignty. This danger is even greater if a country is technologically dependent and socially divided. In general, the economic sovereignty is one of the most important components of the national sovereignty. The concentration of power, economic, political and financial, in multinational companies, provides the opportunity for them to control the economic and social life of the host country, through direct investments. The purpose of the paper is to identify the negative effects of foreign direct investment on the economic sovereignty of national economies through the role of the multinational companies in developing the economic structure and achieving the development priorities of the host country. The paper highlights various aspects of the technological dependence of the host country, due to the technology transfer is often realized through foreign direct investment. Therefore, in order to achieve sustainable development and the preservation of the national and the economic sovereignty, most developing countries take measures to control the activities of multinational companies.