Abstract:According to the theory of investment development path (IDP) put forward by Dunning, there is a systematic correlation between a country's economic development process and its status in international capital flow. In view of the great practical significance of the development process described by IDP theory to the developing countries that implement the "open" development strategy in today's world, this paper summarizes the connotation, development context and shortcomings of IDP theory, so as to further explore and improve the dynamic change mechanism of IDP theory under the new situation of current global economic development, It lays a theoretical foundation for further exploring the realizability of the open development strategy of developing countries.

Authors:Chen T.T, Chen Xiao

Nankai Economic Review. Vol.4, 2012