Foreign Direct Investment In Developing Economies

Author : Sarbajit Chaudhuri,Ujjaini Mukhopadhyay
Publisher : Springer
Page : 327 pages
File Size : 53,9 Mb
Release : 2014-07-08
Category : Business & Economics
ISBN : 9788132218982

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Foreign Direct Investment in Developing Countries by Sarbajit Chaudhuri,Ujjaini Mukhopadhyay Pdf

In development literature Foreign Direct Investment (FDI) is traditionally considered to be instrumental for the economic growth of all countries, particularly the developing ones. It acts as a panacea for breaking out of the vicious circle of low savings/low income and facilitates the import of capital goods and advanced technical knowhow. This book delves into the complex interaction of FDI with diverse factors. While FDI affects the efficiency of domestic producers through technological diffusion and spill-over effects, it also impinges on the labor market, affecting unemployment levels, human capital formation, wages (and wage inequality) and poverty; furthermore, it has important implications for socio-economic issues such as child labor, agricultural disputes over Special Economic Zones (SEZ) and environmental pollution. The empirical evidence with regard to most of the effects of FDI is highly mixed and reflects the fact that there are a number of mechanisms involved that interact with each other to produce opposing results. The book highlights the theoretical underpinnings behind the inherent contradictions and shows that the final outcome depends on a number of country-specific factors such as the nature of non-traded goods, factor endowments, technological and institutional factors. Thus, though not exhaustive, the book integrates FDI within most of the existing economic systems in order to define its much-debated role in developing economies. A theoretical analysis of the different facets of FDI as proposed in the book is thus indispensable, especially for the formulation of appropriate policies for foreign capital.

Author : Theodore Moran
Publisher : Columbia University Press
Page : 216 pages
File Size : 50,8 Mb
Release : 1998-12-01
Category : Business & Economics
ISBN : 9780881323276

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Foreign Direct Investment and Development by Theodore Moran Pdf

Foreign direct investment (FDI) has grown dramatically and is now the largest and most stable source of private capital for developing countries and economies in transition, accounting for nearly 50 percent of all those flows. Meanwhile, the growing role of FDI in host countries has been accompanied by a change of attitude, from critical wariness toward multinational corporations to sometimes uncritical enthusiasm about their role in the development process. What are the most valuable benefits and opportunities that foreign firms have to offer? What risks and dangers do they pose? Beyond improving the micro and macroeconomic "fundamentals" in their own countries and building an investment-friendly environment, do authorities in host countries need a proactive (rather than passive) policy toward FDI? In one of the most comprehensive studies on FDI in two decades, Theodore Moran synthesizes evidence drawn from a wealth of case literature to assess policies toward FDI in developing countries and economies in transition. His focus is on investment promotion, domestic content mandates, export-performance requirements, joint-venture requirements, and technology-licensing mandates. The study demonstrates that there is indeed a large, energetic, and vital role for host authorities to play in designing policies toward FDI but that the needed actions differ substantially from conventional wisdom on the topic. Dr. Moran offers a pathbreaking agenda for host governments, aimed at maximizing the benefits they can obtain from FDI while minimizing the dangers, and suggests how they might best pursue this agenda.

Author : OECD
Publisher : OECD Publishing
Page : 232 pages
File Size : 53,9 Mb
Release : 2002-09-24
Category : Electronic
ISBN : 9789264199286

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Foreign Direct Investment for Development Maximising benefits, minimising costs by OECD Pdf

Provides a comprehensive review of the issues related to the impact of FDI on development as well as to the policies needed to maximise the benefits.

Author : Theodore H. Moran
Publisher : Peterson Institute
Page : 183 pages
File Size : 53,8 Mb
Release : 2011
Category : Business & Economics
ISBN : 9780881326000

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Foreign Direct Investment and Development by Theodore H. Moran Pdf

In this cutting-edge analysis of foreign direct investment (FDI), Moran--one of the acknowledged experts in this area--questions traditional econometric measures of foreign direct investment flows, identifies flaws in past research, elaborates on how the latest research has moved More ... into new territory, and provides a first look at what new research has uncovered. Moran concentrates on FDI in the manufacturing and assembly sector, and discusses if FDI in manufacturing raises the productivity of host country economic activities, if FDI makes the host more competitive in new sectors, and generates externalities that benefit local firms and workers. He provides important new data on the kinds of activities, types of jobs, and level of wages associated with multinational manufacturing investment. This volume dissects the market failures associated with the contemporary idea of development as selfdiscovery, and addresses the tricky question of whether to provide incentives for FDI. In addition, he provides a novel reassessment of the debate about FDI crowding-out or crowding-in domestic investment. This book provides insight and lessons for developing and developed countries, NGOs, the corporate responsibility community, and multilateral lending institutions

Author : Yasmin Shoaib
Publisher : GRIN Verlag
Page : 20 pages
File Size : 51,7 Mb
Release : 2006-10-30
Category : Political Science
ISBN : 9783638562867

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Foreign Direct Investment in Developing Countries - Policy Considerations for sustainable Growth by Yasmin Shoaib Pdf

Seminar paper from the year 2006 in the subject Business economics - Economic Policy, grade: 1,3, Berlin School of Economics, course: Development Economics, 12 entries in the bibliography, language: English, abstract: Developing countries today have to deal with the question of how to increase economic growth. This phenomenon depends on a variety of factors: political, economic and social ones. Due to globalisation, foreign direct investment (FDI) has become an often discussed issue in literature and is seen as a key factor for economic growth by many developing countries by now. But the effects of FDI are not necessarily positive. In this written assignment, the author would like to introduce policies to be conducted in order to maximise the positive effects and to minimise the negative ones. This paper will start with a definition of the terms developing country and foreign direct investment. In the second part, a short introduction in the controversial theories about the impact on economies of developing countries will be presented. In the following, several national and international policy considerations will be introduced. The paper will end with a conclusion.

Author : Organisation for Economic Co-operation and Development
Publisher : OECD Publishing
Page : 244 pages
File Size : 42,5 Mb
Release : 2002
Category : Social Science
ISBN : STANFORD:36105111048455

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Foreign Direct Investment for Development by Organisation for Economic Co-operation and Development Pdf

Foreign direct investment (FDI) is an integral part of an open and effective international economic system and can provide a major catalyst to development. However, the benefits of FDI do not accrue automatically and evenly across countries, sectors and local communities. This publication looks at the impact of FDI on development issues and considers the policies required to maximise its benefits for developing countries. Aspects discussed include: the macroeconomic benefits for host countries; recent FDI trends; its impact on growth; foreign trade linkages; technology transfer; human capital enhancement; market structures and competition; social and environmental consequences; and country experiences in realising the benefits of FDI.

Author : OECD
Publisher : OECD Publishing
Page : 112 pages
File Size : 42,5 Mb
Release : 1998-08-05
Category : Electronic
ISBN : 9789264162983

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Foreign Direct Investment and Economic Development Lessons from Six Emerging Economies by OECD Pdf

This study examines the link between FDI and development in six dynamic non-Member economies: Argentina, Brazil, Chile, Indonesia, Malaysia and the Philippines.

Author : H. Kehal
Publisher : Springer
Page : 261 pages
File Size : 49,6 Mb
Release : 2004-11-10
Category : Business & Economics
ISBN : 9780230554412

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Foreign Investment in Developing Countries by H. Kehal Pdf

This volume examines foreign investment in developing countries both from a theoretical perspective and country specific perspective. It covers strategies to maximize the benefits that draw from the inward investment flow as well as examining foreign investment as a vehicle for international economic integration. The book focuses on foreign investment in the third and fourth largest economies of the world - the Peoples Republic of China and India - in addition to Indonesia, Malaysia and other countries.

Author : E. Graham
Publisher : Springer
Page : 233 pages
File Size : 44,5 Mb
Release : 2005-04-28
Category : Political Science
ISBN : 9780230522954

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Multinationals and Foreign Investment in Economic Development by E. Graham Pdf

During the past twenty or so years, foreign direct investment (FDI) flows have increased at rates approaching the astounding, especially so during the 1990s. While much of the increase was due to unprecedented cross-border mergers and acquisitions among high-income countries, the amount of FDI flowing to developing nations also grew substantially. This volume examines the economics of this FDI to developing countries. Some chapters are theoretical in nature, others empirical, and still others are largely policy-oriented. Topics covered include whether FDI makes an autonomous contribution to growth in these nations and whether or not 'spillovers' are generated by this investments. Also covered are effects of policy intervention by governments on FDI flows and whether non-economic factors (e.g. cultural factors) might figure as determinants of location of FDI.

Author : Mr.Ali J Al-Sadiq
Publisher : International Monetary Fund
Page : 28 pages
File Size : 52,5 Mb
Release : 2013-02-26
Category : Business & Economics
ISBN : 9781475517934

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Outward Foreign Direct Investment and Domestic Investment by Mr.Ali J Al-Sadiq Pdf

Over the past two decades, the growth rate of outward foreign direct investment (FDI) from developing and transition economies has increased significantly. Given the role of physical capital accumulation in determining the economic growth rate, it is important to assess how domestic investment responds to such outflows. This study empirically examines the effects of outward FDI on domestic investment in developing countries. Using data from 121 developing and transition economies over the period 1990–2010, the results suggest that FDI outflows negatively impact the rate of domestic investment.

Author : Theodore H. Moran
Publisher : Peterson Institute
Page : 220 pages
File Size : 43,6 Mb
Release : 1998
Category : Business & Economics
ISBN : 088132258X

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Foreign Direct Investment and Development by Theodore H. Moran Pdf

Explores three related issues of foreign direct investment (FDI) from the point of view of the host country: benefits and risks; the effectiveness of international markets in providing FDI to developing countries; and the kinds of policies that allow countries to capture the benefits and avoid the risks of FDI. Annotation copyrighted by Book News, Inc., Portland, OR

Author : Theodore H. Moran,Edward Montgomery Graham,Magnus Blomström
Publisher : Peterson Institute
Page : 442 pages
File Size : 53,5 Mb
Release : 2005
Category : Business & Economics
ISBN : 0881323810

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Does Foreign Direct Investment Promote Development? by Theodore H. Moran,Edward Montgomery Graham,Magnus Blomström Pdf

This volume gathers the cutting edge of new research on foreign direct investment and host country economic performance, and presents the most sophisticated critiques of current and past inquiries. It presents new results, concludes with an analysis of the implications for contemporary policy debates, and proposed new avenues for future research.

Author : Peter Nunnenkamp
Publisher : Unknown
Page : 28 pages
File Size : 51,5 Mb
Release : 2001
Category : Electronic
ISBN : UCSD:31822031065386

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Foreign Direct Investment in Developing Countries by Peter Nunnenkamp Pdf

Since recent financial crises in Asia and Latin America, developing countries have been strongly advised to rely primarily on foreign direct investment (FDI) in order to promote economic development on a sustainable basis. Even harsh critics of rash capital account liberalization argue in favor of opening up towards FDI. Yet, economists know surprisingly little about the driving forces and the economic effects of FDI. There are few undisputed insights on which policymakers can rely. Globalization through FDI has become significantly more important since the early 1990s. Various groups of developing countries have participated to a strikingly different degree in the FDI boom. However, the distribution of FDI does not support the widely held view that FDI is concentrated in just a few developing countries. Considered in relative terms, various small and less advanced countries have been attractive to FDI. Policymakers should be aware that various measures intended to induce FDI, including the liberalization of FDI regulations and business facilitation, are unlikely to do the trick. Promotional efforts will help little to attract FDI if economic fundamentals are not conducive to FDI. Fiscal and financial incentives offered to foreign investors may do more harm than good by giving rise to costly "bidding wars". The importance of traditional determinants of FDI, notably the size of local markets, can no longer be taken for granted. Globalization tends to induce a shift from purely market-seeking FDI to new types of FDI, for which the international competitiveness of local production is highly relevant. The challenge for policymakers in developing countries then is to create immobile domestic assets that provide a competitive edge in the competition for FDI. This task has various dimensions, ranging from local capacity building and the provision of efficient business-related services to trade liberalization with regard to capital goods and intermediate products. Policymakers should not expect too much from FDI inflows. Capital formation continues to be a national phenomenon in the first place. FDI is superior to other types of capital inflows in some respects, particularly because of its risksharing properties, though not necessarily in all respects. The nexus between FDI and overall investment as well as economic growth in host countries is neither self-evident nor straightforward, but remains insufficiently explored territory

Author : Harinder Singh,Kwang Woo Jun
Publisher : World Bank Publications
Page : 48 pages
File Size : 43,9 Mb
Release : 1995
Category : Direkte investeringer
ISBN : 8210379456XXX

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Some New Evidence on Determinants of Foreign Direct Investment in Developing Countries by Harinder Singh,Kwang Woo Jun Pdf

Author : Dale R. Weigel
Publisher : World Bank Publications
Page : 132 pages
File Size : 55,7 Mb
Release : 1997-01-01
Category : Business & Economics
ISBN : 0821340506

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Foreign Direct Investment by Dale R. Weigel Pdf

The report reviews lessons from the International Finance Corporation's (IFC) investment, and advisory experience in the developing world, which show the interactions between policy frameworks, and the volume and structure of foreign direct investments (FDI). Case studies show how the Corporation promotes successful project structures, and regulatory changes, as it tries to attain the strongest development impact for investments. In developing countries, FDI has flowed mainly into manufacturing, and processing industries. In the past, investment attractiveness had been closely linked to possession of natural resources, or a large domestic market, while production and trade globalization, competitiveness as a location for investment, and exporting, have become the main determinants of attractiveness. Sources of FDI in the past, came almost exclusively from industrial countries, though recently those sources have widened, emerging from developing countries in their own right, and for their own regions. IFC, as an international initiative to promote FDI in developing countries, is liable to promote bilateral trade agreements, bilateral and multilateral financial institutions, and investment promotion programs; its advisory role may vary from diagnostic studies overviewing constraints to FDI, to investment policy studies giving specific solutions on either changes, or strategies. The study further looks at how policy environment is set, and at finding investor opportunities, through project financing, largely structured as joint ventures. The inherent, fragile nature of joint ventures, restricts foreign ownership, thus limiting project structures; however, careful project design has lead to successful operations, by ensuring management, and financial arrangements. Still, to maximize benefits, an unfinished agenda of policy reform remains, and, as more countries open to FDI, this integration will lead to an overall increase in FDI flows.