This chapter assesses the effects of “Eastern” EU-enlargement on the race for FDI and the policy implications. We start from the proposition that the evolving production patterns of incumbent and new member states determine the need for and the justification of location policy (LP) and FDI promotion policy (FDI-PP). On the basis of empirical production patterns, it is argued that while the spec...

It is often argued, though mostly informally, that outward foreign direct investment (FDI) is a synonym for the export of employment and thus detrimental to the home economy. To see whether and under what conditions this intuition indeed holds true, we construct a model of unionized duopoly and examine welfare implications of outward FDI on the home country. It is found that the welfare effect ...

The paper investigates the impact of foreign direct investment (FDI) on economic growth using detailed sectoral data for FDI inflows to Indonesia over the period 1997-2006. In the aggregate level, FDI is observed to have a positive effect on economic growth. However, when accounting for the different average growth performance across sectors, the beneficial impact of FDI is no longer apparent. ...

OBJECTIVE To describe inequalities in the infant mortality rate (IMR) according to socioeconomic indicators among geographic areas and municipalities in Brazil. METHODS This was an exploratory ecological study of space aggregates that described IMR in 2006-2008 according to municipalities, states, and the Family Development Index (FDI), a socioeconomic indicator that ranges from 0 to 1. All t...

With the initiation of globalization, developing countries, particularly those in Asia, have been witnessing a immense surge of FDI inflows during the past two decades. Even though India has been a latecomer to the FDI scene compared to other East Asian countries, its considerable market potential and a liberalized policy regime has sustained its attraction as a favourable destination for forei...

In a global context foreign direct investment (FDI) and migration substitute one another in the matching process between workers and firms. However, as labor flows can lead to the formation of business networks, migration can actually facilitate FDI in the long-run. We first present a stylized model for a small open economy illustrating these offsetting effects. We then use U.S. data on bilater...

The upsurge of Chinese and Indian outward foreign direct investment (FDI) raises an unanswered question about locational determinants of direct investment from the two countries. Using an unbalanced bilateral FDI database, we find that Chinese and Indian FDI are attracted to countries with large market size, low GDP growth, high volumes of imports from China or India, and low corporate tax rate...

We study the relationship between international migration and foreign direct investment (FDI), differentiating between the two modes of entry: greenfield FDI and cross-border mergers and acquisitions (M&A). Greenfield FDI is often favored over cross-border M&A (i.e., brownfield FDI) by host countries because it is associated with greater job creation and technology transfers. This implies highe...

This paper aims to find out the relationship between inward FDI into China and China’s economic development. According to the descriptive analysis of FDI data from 1980 till 2007, we firstly found that there is a sectoral and regional biased distribution with regard to the inward FDI into China; we saw that the contribution of inward FDI to China’s economic development exhibits a reversed U sha...

Although FDI have been at the forefront of economic debate since a long time, economists have not yet developed a unified framework for their investigation. In this paper, we put forward the idea that an essential point to analyze FDI concerns their underpinning motives. Motives are at the core of FDI and FDI are only but one of different alternative means for firms to grasp an opportunity in a...