Market failures are much less in evidence in this segment of the financial market and hence calls for direct Government support are more difficult to justify. Government should avoid investing directly in production facilities, such as agro-processing facilities, or providing finance to private investors for this purpose.
not for consumption), and there was a substantial technological transfer that went with the foreign direct investment which dominated the flows. Following the “stages of development” academic literature, we can see these flows being used to partially fund the catch-up as Singapore moved towards the technological frontier and its living standards rose to equal those of the industrialised Western countries.