FDI from developing countries
Subtitle: a vector for trade and development
By: Byung-Hwa Lee.
Contributors: Organisation for Economic Co-operation and Development. Development Centre.
Series: Development Centre studies
Publisher: Development Centre, Organisation for Economic Co-operation and Development
Published: 2002
Place of publication: Paris, France
Language: eng
Number of pages: 143
Subjects: Investments, Foreign -- Developing countries.; Foreign trade regulation -- Developing countries.; Developing countries -- Foreign economic relations.
Description: This book illustrates Korea's experience with outward foreign direct investment (FDI) and shows that the ancillary benefits of such investment -- knowledge and management transfer, market acquisition and skills enhancement -- can be substantial for individual firms. Moreover, the resulting increased robustness of these enterprises contributes to the strength and stability of the economy as a whole. While it is true that inward FDI carries similar benefits, outward FDI -- driven by the prerogatives of the domestic company -- is integrated into existing business plans and strategies, and therefore constitutes a more active policy. No experience is directly transferable, but the Korean case shows that there is a large potential for other emerging economies to gain from FDI flows and that the initial costs from lost internal investment are largely outweighed by the medium-term benefits.
Notes: Includes bibliographical references (p. 137-143)