Although the risk of expropriation for foreign direct investment (FDI) has fallen substantially since the 1970s, political risk continues to be of concern to MNCs in many countries. I ask whether domestic political checks and balances and international legal instruments that aim to protect FDI enable governments to commit credibly to avoid future policies that diminish the value of sunk FDI. Ut...

China is the most significant transition economy. It is most heavily engaged in international business and investment. China is the largest foreign direct investment (FDI) recipient in the developing countries, accounting for almost half of total FDI inflow in developing countries (World Investment Report, 1999). China is also unique because its transition continues to be planned by the state a...

1. Introduction As one of the basic drives of globalization, Foreign Direct Investment (FDI) is playing an active role in the economic development of NIEs. For instance, in China 2004, fixed assets investment, industry value added, and export of FDI firms accounts for 12%, 28%, and 57% of nation's total amount. 24 million employees are hired by FDI firms which accounts for 10% of all non-agricu...

Nowadays, Foreign Capital Inflows (FCIs) are considered as a catalyst for economic development and an important source of transferring technology and foreign exchange earnings from developed to developing countries. The purpose of this paper is to estimate the impact of FCIs (which include foreign direct investment, personal remittances and official development investment) on economic growth in...

The paper discusses a theory of FDI, which captures a unique feature: hands-on management standards to react in real time to a changing economic environment in the firms that FDI investors gain control. Equipped with superior managerial skills, foreign direct investors outbid portfolio investors for the top productivity firms in a particular industry in which they have specialized in the source...

Foreign Direct Investment, Black Economic Empowerment and Labour Productivity in South Africa The impact of foreign direct investment (FDI) on domestically owned firms in developing countries has been widely debated in the literature. It has been argued that FDI provides access to advanced technologies and other intangible assets which may spill over to the host country and allow domestic firms...

In contrast to the empirical literature’s focus on foreign direct investment (FDI), this study examines the effects of foreign portfolio investment (FPI) and “other” foreign investment (OFI) on economic growth using data on 88 countries from 1977 through 2000. Most measures suggest that FPI has no effect, and some results indicate that OFI has a negative impact on growth that is somewhat mitiga...

This paper examines the evolution of the literature on the relationship between foreign direct investment (FDI) and growth in host countries, particularly developing countries. It provides a broad overview, with a focus on two elements that have recently become particularly important, (1) the role of complementary local conditions conducive to reaping the benefits of FDI (which relate to when F...