Foreign Direct Investment and Development: Launching a Second Generation of Policy Research : Avoiding the Mistakes of the First, Reevaluating Policies for Developed and Developing Countries

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Peterson Institute, 2011 - Business & Economics - 170 pages
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This volume is the culmination of Institute investigations of the relationship between foreign direct investment (FDI) and development. Today, more than one-third of world trade takes place in the form of intrafirm transactions--that is, trade among the various parts of the same corporate network spread across borders--and the bulk of technology is transferred within the confines of integrated international production systems. This means that FDI and the operations of multinational corporations have become central to the world economy at large. Nowhere is this more important than for developing countries. But as the author argues, FDI is not a single phenomenon. FDI has such different impacts in the extractive sector, infrastructure, manufacturing and assembly, and services- and presents such distinctive policy challenges-- that each broad category of FDI must be treated on its own terms. Indeed, past studies that have aggregated all FDI flows together to try to find some unique relationship to host-country growth or welfare have led to unreliable substantive findings and, sometimes, mistaken policy conclusions. The author examines each of the principle forms of FDI, extracts the best from previous analysis, and offers new findings and perspectives about how these benefits from FDI in each sector can be enhanced and potential damages limited or eliminated. -- Back Cover.
  

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Contents

Ch 1 Introduction
1
Ch 2 FDI in Extractive Industries
9
Ch 3 FDI in Infrastructure
25
Ch 4 FDI in Manufacturing and Assembly
33
Ch 5 A First Look at the Impact of FDI in Services
73
Ch 6 Reconsidering the Debate on FDI Crowding Out or Crowding In Domestic Investment
75
Ch 7 FDI HostCountry Growth and Structural Transformation
81
Consequences for DevelopedCountry Home Economies
99
Ch 9 Policy Implications
125
The SecondGeneration Research Agenda
139
References
143
Abbreviations
161
Index
163
Copyright

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About the author (2011)

Theodore H. Moran holds the Marcus Wallenberg Chair in International Business and Finance at the School of Foreign Service at Georgetown University. He is also the founder and director of the Landegger Program in International Business Diplomacy at the university.

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