Does Foreign Direct Investment Promote Development?

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Theodore Moran, Edward M Graham, Magnus Blomström
Columbia University Press, Apr 15, 2005 - Business & Economics - 440 pages
What is the impact of foreign direct investment (FDI) on development? The answer is important for the lives of millions—if not billions—of workers, families, and communities in the developing world. The answer is crucial for policymakers in developing and developed countries, and in multilateral agencies. This volume gathers together the cutting edge of new research on FDI and host country economic performance and presents the most sophisticated critiques of current and past inquiries. It probes the limits of what can be determined from available evidence and from innovative investigative techniques. In addition, the book presents new results, concludes with an analysis of the implications for contemporary policy debates, and proposes new avenues for future research.


Chapter 1 Introduction and Overview
Why Such Different Answers?
What Do Firm Perceptions Tell Us?
The Case for Public Intervention
Chapter 5 RD Activities of Foreign and National Establishments in Turkish Manufacturing
Beyond Productivity Spillovers
A Critical Survey and a Simple Model
Gordon H Hanson
Findings and Implications for Models and Policies Toward Trade and Investment
Marc J Melitz
Chapter 11 How Does FDI Affect Host Country Development? Using Industry Case Studies to Make Reliable Generalizations
Review and Evaluation
Chapter 13 Is Africas Skepticism of Foreign Capital Justified? Evidence from East African Firm Survey Data
Robert Z Lawrence
Chapter 14 Conclusions and Implications for FDI Policy in Developing Countries New Methods of Research and a Future Research Agenda
About the Contributors

Michael P Keane
Chapter 8 Does Foreign Direct Investment Accelerate Economic Growth?
Chapter 9 Inappropriate Pooling of Wealthy and Poor Countries in Empirical FDI Studies

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About the author (2005)

Theodore H. Moran, nonresident senior fellow, has been associated with the Peterson Institute since 1998. He holds the Marcus Wallenberg Chair at the School of Foreign Service in Georgetown University. He is the founder of the Landegger Program in International Business Diplomacy at the university and serves as director there. He also serves as a member of Huawei's International Advisory Council. From 2007 to 2013 he served as Associate to the US National Intelligence Council on international business issues.

Edward M. Graham (1944–2007) was a senior fellow at the Peterson Institute from 1990 to 2007. He also taught concurrently as adjunct professor at Columbia University in New York. Previously he was an economist at the US Treasury and taught full-time in the business schools of several US universities (MIT, University of North Carolina Chapel Hill, Duke University, among others). While serving at the Treasury, he was seconded for two years to the Organization for Economic Cooperation and Development (OECD) in Paris. He also served as visiting or adjunct faculty at the University of Virginia, Charlottesville; Stanford University (Washington Program); The Johns Hopkins University; Seoul National University; Harvard University (John F. Kennedy School of Government); INSEAD (European Institute of Administration, Fontainebleau, France); and the University of Paris I (Pantheon/La Sorbonne). His research interests have included foreign direct investment, international competition policy, and the industrial organization of major Asian economies.

Magnus Blomström has been a professor of economics at the Stockholm School of Economics since 1990 and president of the European Institute of Japanese Studies, Stockholm School of Economics since 1997. He was an assistant professor in the department of economics, University of Gothenburg (1985-87) and a research fellow at the Institute for International Economic Studies, University of Stockholm (1982-84). He is a research associate at the National Bureau of Economic Research and research fellow at the Centre of Economic Policy Research.

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