Foreign direct investment and development
Subtitle: launching a second generation of policy research : avoiding the mistakes of the first, reevaluating policies for developed and developing countries
By: Theodore H. Moran
Contributors: Peterson Institute for International Economics
Publisher: Peterson Institute for International Economics
Published: 2011
Place of publication: Washington, D.C
Language: eng
Number of pages: 170
ISBN-13: 9780881326000
Subjects: Government policy; Foreign Investments
Description: 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.
Notes: Includes bibliographical references and index.
Table of contents: title: Introduction and overview; title: FDI in extractive industries; title: FDI in infrastructure; title: FDI in manufacturing and assembly; title: First look at impact of FDI in services; title: Reconsidering the debate about FDI "crowding out" or "crowding in" domestic investment; title: FDI, host-country growth, and structural transformation : how large are the gains, and should FDI be subsidized?; title: The globalization of industry via FDI : consequences for developed-country home economies; title: Policy implications; title: Lessons and concluding observations.