The question of complementarity or substitutability of FDI and international labour mobility has not yet been answered. The substitutability assumption does not take into consideration the technological spillover of FDI in the host countries. Moreover, migration flows reveal cultural characteristics and labour force properties of their native country which may stimulate bilateral business netwo...

Background A synergy exists between investment liberalisation and the effective application of competition policy. An effective competition policy does not only remove obstacles to entry, but can also facilitate foreign investment flows by providing a predictable legal and regulatory environment that reduces the scope of arbitrary decision-making. Regulation of the business practices of investo...

FDI is, however, risky for the investing firm and often controversial for the host. So while some states and regions in the U.S. have enthusiastically embraced FDI as part of their economic development strategies, other states have not. Successes around the country have led to reconsideration of the previous views of FDI, and most states are now actively seeking investment from overseas, many w...

Although transnational corporations play the crucial role as transplanters of technology, skills and access to the world market, how they facilitate structural upgrading and economic growth in developing countries has not been adequately conceptualized in terms of a theory of economic development. This article develops a dynamic paradigm o TNC-assisted development by recognizing five key struct...

This paper examines whether policies to promote foreign direct investment (FDI) make economic sense. The discussion focuses on whether existing academic research suggests that the benefits of FDI are sufficient to justify the kind of policy interventions seen in practice. For small open economies, efficient taxation of foreign and domestic capital depends on their relative mobility. If foreign ...