Foreign capital flows are believed to be influenced by economic indicators like market size and export intensity, irrespective of the source and the destination countries. This book takes an alternate approach based on the concepts of neighbourhood and extended neighbourhood. Focussing on China, India and the Caribbean, it analyzes foreign capital inflows from the perspective of both the source and destination countries. It delves deep into the determinants of foreign capital, proposing the neighbourhood model to explain the flow of foreign capital and exploring the direct and spillover effects of foreign capital on the destination countries' economy.