Title The Evolving Nature of FDI Industrial Organisation and Challenges for Policy and Practice. Working Paper.
Abstract This working paper discusses the reinforcing role of investment in economic development and industrialisation. In this process, Foreign Direct Investment (FDI) is widely regarded as a key driver and enabler of industrial performance. The paper highlights the imbalances that exist within both FDI in-flow patterns and FDI stocks, at both global and regional levels. The paper also addresses major issues for developing countries in understanding the complex and continually evolving dynamics of FDI activity, and the need for clear, effective and cogent policies to attract and retain FDI. These key issues concern not only how developing countries articulate policies and strategies to compete effectively for FDI, especially from the integrated international operations of Multinational Enterprises (MNEs); but also ways in which developing countries can best harness motivations for FDI, and thereby maximise the positive effects from FDI and minimise any negative spillovers. In this context, developing countries can learn much from Southeast Asia's relative success in attracting FDI.
Date 2005
Language(s) English
Pages 38 pages
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