Gains from Foreign Direct Investment : Macro and Micro Approaches
This paper discusses the importance of an “integrated approach” to the study of the effects of FDI on host countries. Macro-level work that examines countries at different stages of development and institutional capacity is needed to surface the ro...
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| Format: | Journal Article |
| Language: | English |
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Published by Oxford University Press on behalf of the World Bank
2019
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| Online Access: | http://documents.worldbank.org/curated/en/292971565606474588/Gains-from-Foreign-Direct-Investment-Macro-and-Micro-Approaches http://hdl.handle.net/10986/32227 |
| Summary: | This paper discusses the importance of
an “integrated approach” to the study of the effects of FDI
on host countries. Macro-level work that examines countries
at different stages of development and institutional
capacity is needed to surface the role of local conditions
and absorptive capacities; micro-level work, that is
firm-level data in developed as well as developing nations,
to understand the mechanisms that impart substance to the
anticipated benefits; and theoretical work to guide the
analyses. The paper summarizes likely motives for foreign
direct investment and potential effects of FDI on local
economies as well as recent findings from the macro
literature on the role of complementarities between FDI and
local policies, conditions, and institutions and summarizes
new efforts to understand the micro mechanisms and channels
by which host countries can benefit from multinational
activity, within and between firm productivity increases. |
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