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FDI and its role in economic development: Do we need a new agenda?

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Lall, Sanjaya
Narula,Rajneesh (MERIT)

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Abstract

Despite globalisation, the essential role of FDI in economic development has not changed. However, many mechanisms and dynamics of FDI-assisted development have changed: there is greater variation in the kinds of FDI, the benefits each offers, and the manner in which each interacts with the host economy. This introductory article attempts to place the discussions and issues raised in this special issue of The European Journal of Development Research within the wider literature on FDI and development. The papers here analyse the role of MNEs in industrial development in a ‘learning system’ perspective. They also analyse the policy tools available for using FDI for economic development in a liberalising, post-WTO world, and the constraints to doing this. While this is a nascent debate, this special issue points to a variety of ‘soft’ policy options that provide a pragmatic response to the complexities of globalisation.

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Paper provided by Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology in its series Research Memoranda with number 019.

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Date of creation: 2004
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Handle: RePEc:dgr:umamer:2004019

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Keywords: economics of technology ;

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  1. McAleese, Dermot & McDonald, Donogh, 1978. "Employment Growth and the Development of Linkages in Foreign-Owned and Domestic Manufacturing Enterprises," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 40(4), pages 321-39, November.
  2. Narula,Rajneesh, 2004. "Understanding absorptive capacities in an "innovation systems" context: consequences for economic and employment growth," Research Memoranda 004, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
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  3. Mortimore, Michael, 2000. "Corporate Strategies for FDI in the Context of Latin America's New Economic Model," World Development, Elsevier, vol. 28(9), pages 1611-1626, September. [Downloadable!] (restricted)
  4. Narula,Rajneesh & Criscuolo,Paola, 2002. "A novel approach to national technological accumulation and absorptive capacity: Aggregating Cohen and Levinthal," Research Memoranda 018, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
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  5. Findlay, Ronald, 1978. "Relative Backwardness, Direct Foreign Investment, and the Transfer of Technology: A Simple Dynamic Model," The Quarterly Journal of Economics, MIT Press, vol. 92(1), pages 1-16, February. [Downloadable!] (restricted)
  6. Lall, Sanjaya, 1992. "Technological capabilities and industrialization," World Development, Elsevier, vol. 20(2), pages 165-186, February. [Downloadable!] (restricted)
  7. Lall, Sanjaya, 1980. "Vertical Inter-Firm Linkages in LDCs: An Empirical Study," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 42(3), pages 203-26, August.
  8. Ari Kokko & Mario Zejan & Ruben Tansini, 2001. "Trade regimes and spillover effects of FDI: Evidence from Uruguay," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 137(1), pages 124-149, March. [Downloadable!] (restricted)
  9. Rajneesh Narula & John Dunning, 2000. "Industrial Development, Globalization and Multinational Enterprises: New Realities for Developing Countries," Oxford Development Studies, Taylor and Francis Journals, vol. 28(2), pages 141-167. [Downloadable!] (restricted)
  10. Holger Görg & Frances Ruane, 1998. "Linkages between Multinationals and Indigenous Firms: Evidence for the Electronics Sector in Ireland," Economics Technical Papers 9813, Trinity College Dublin, Department of Economics. [Downloadable!]
  11. G R G Benito & B Grøgaard & R Narula, 2003. "Environmental influences on MNE subsidiary roles: economic integration and the Nordic countries," Journal of International Business Studies, Palgrave Macmillan Journals, vol. 34(5), pages 443-456, September. [Downloadable!] (restricted)
  12. Henry J. Bruton, 1998. "A Reconsideration of Import Substitution," Journal of Economic Literature, American Economic Association, vol. 36(2), pages 903-936, June. [Downloadable!] (restricted)
  13. Borensztein, E. & De Gregorio, J. & Lee, J-W., 1998. "How does foreign direct investment affect economic growth?1," Journal of International Economics, Elsevier, vol. 45(1), pages 115-135, June. [Downloadable!] (restricted)
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  14. Bruton, H.J., 1998. "A Reconsideration of Import Substitution," Center for Development Economics 156, Department of Economics, Williams College.
  15. Blomstrom, Magnus & Kokko, Ari, 1997. "How foreign investment affects host countries," Policy Research Working Paper Series 1745, The World Bank. [Downloadable!]
  16. Hagedoorn ,John & Narula ,Rajneesh, 1995. "Evolutionary understanding of corporate foreign investment behaviour : US foreign direct investment in Europe," Research Memoranda 001, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
  17. Manuel R. AGOSIN & Ricardo MAYER, 2000. "Foreign Investment In Developing Countries, Does It Crowd In Domestic Investment?," UNCTAD Discussion Papers 146, United Nations Conference on Trade and Development. [Downloadable!]
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  18. Alcorta, Ludovico, 2000. "New Economic Policies and the Diffusion of Machine Tools in Latin America," World Development, Elsevier, vol. 28(9), pages 1657-1672, September. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Narula, Rajneesh & Bellak, Christian, 2008. "EU enlargement and consequences for FDI assisted industrial development," UNU-MERIT Working Paper Series 067, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology. [Downloadable!]
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  2. Chaminade, Cristina & Vang-Lauridsen, Jan, 2006. "Globalisation of Knowledge Production and Regional Innovation Policy: Supporting Specialized Hubs in Developing Countries," CIRCLE Electronic Working Paper Series 2006-15, CIRCLE (Centre for Innovation, Research and Competence in the Learning Economy), Lund University. [Downloadable!]
  3. Benito, Gabriel & Narula, Rajneesh, 2007. "States and Firms on the Periphery: The Challenges of a Globalising World," UNU-MERIT Working Paper Series 004, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology. [Downloadable!]
  4. Chaminade, Cristina & Vang-Lauridsen, Jan, 2008. "Upgrading in Asian clusters: Rethinking the importance of interactive-learning," CIRCLE Electronic Working Paper Series 2008-21, CIRCLE (Centre for Innovation, Research and Competence in the Learning Economy), Lund University. [Downloadable!]
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  5. Matthew A Cole & Robert R J Elliott & Eric Strobl, 2007. "The Environmental Performance of Firms: The Role of Foreign Ownership, Training, and Experience," Discussion Papers 07-08, Department of Economics, University of Birmingham. [Downloadable!]
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  6. Chaminade, Cristina & Vang-Lauridsen, Jan, 2008. "Globalisation of Knowledge Production and Regional Innovation Policy: Supporting Specialized Hubs in the Bangalore Software Industry," CIRCLE Electronic Working Paper Series 2008-20, CIRCLE (Centre for Innovation, Research and Competence in the Learning Economy), Lund University. [Downloadable!]
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