Does Foreign Direct Investment Promote Development?Theodore H. Moran, Magnus Blomstrom, Edward Montgomery Graham, Magnus Blomström 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. |
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Total surplus rises because the new technology increases productivity and because the deadweight from imperfect ... The lower supply prices may induce entry and increase competition so that prices fall in the downstream markets .
Given that FDI lowers prices , one expects to see an increase in output . Both downstream FDI and suppliers ' downstream FDI increase output , likely through the effect of FDI on prices and the demand added by the new entry .
Table 6.1 also shows that foreign manufacturing firms increased their linkages between 1987 and 1996 by roughly 3 ... and Ruane ( 2001 ) present econometric evidence to suggest that individual firms increase their linkages over time .
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Contents
RD Activities of Foreign and National | 107 |
Foreign Direct Investment and Local Economic | 137 |
Comment | 175 |
Copyright | |
11 other sections not shown
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Does Foreign Direct Investment Promote Development? Theodore Moran,Edward M Graham,Magnus Blomström Limited preview - 2005 |