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.

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.

This book looks at the evidence and assesses the impact of competition among governments to attract FDI. It finds little evidence directly to support fears of a "global race to the bottom" in labour and environmental standards.

In this cutting-edge analysis of foreign direct investment (FDI), Moran--one of the acknowledged experts in this area--questions traditional econometric measures of foreign direct investment flows, identifies flaws in past research, elaborates on how the latest research has moved More ... into new territory, and provides a first look at what new research has uncovered. Moran concentrates on FDI in the manufacturing and assembly sector, and discusses if FDI in manufacturing raises the productivity of host country economic activities, if FDI makes the host more competitive in new sectors, and generates externalities that benefit local firms and workers. He provides important new data on the kinds of activities, types of jobs, and level of wages associated with multinational manufacturing investment. This volume dissects the market failures associated with the contemporary idea of development as selfdiscovery, and addresses the tricky question of whether to provide incentives for FDI. In addition, he provides a novel reassessment of the debate about FDI crowding-out or crowding-in domestic investment. This book provides insight and lessons for developing and developed countries, NGOs, the corporate responsibility community, and multilateral lending institutions

Provides a comprehensive review of the issues related to the impact of FDI on development as well as to the policies needed to maximise the benefits.

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.

This book is a timely study in light of the resurgence of resource nationalism that is currently occurring in several resource-rich, developing countries. It moves away from the traditional explanations for the disappointing economic performance of resource-rich, developing countries, notably those advanced by key researchers.