This study is the result of research undertaken by the Netherlands Economic Institute, Division Balanced International Growth, Rotterdam, under the auspices of the O.E.C.D. Development Centre. In the division of labour agreed with professor Grant L. Reuber, who directed a parallel study under the auspices of the Centre', the N.E.I. research deals with the evaluation of economic effects of private foreign investment in developing countries. The effects studied are confined to macro-economic effects which are quantifi able. The lack of a satisfactory methodology for the assessment of these...