Advanced Search
MyIDEAS: Login to save this paper or follow this series

Redefining Foreign Direct Investment Policy: A Two Dimensional Framework

Contents:

Author Info

  • Filippov, Sergey

    ()
    (UNU-MERIT)

  • Costa, Ionara

    ()
    (UNU-MERIT)

Abstract

Many countries in the world have adopted policies to attract foreign direct investment (FDI), placing the traditional focus on the maximisation of FDI flows, what can be labeled as a quantitative approach. Recently it has been argued that the FDI policy should be more selective, promoting good quality FDI inflows. The "quality" implies a certain level of technological intensity of activities and functions encompassed in an investment project, and therefore its potential impacts on host country's development. Notwithstanding the importance of this new qualitative approach, a bias towards FDI flows has persisted. While they have received full attention, foreign-owned affiliates already established in an economy have been somehow neglected. This paper seeks to overcome this imbalance and proposes a new approach to FDI policy that incorporates both dimensions. Our main argument is that policy aiming to fostering the development and innovativeness of TNC affiliates can be more effective than the attraction of new affiliates.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.merit.unu.edu/publications/wppdf/2007/wp2007-029.pdf
Download Restriction: no

Bibliographic Info

Paper provided by United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) in its series MERIT Working Papers with number 029.

as in new window
Length:
Date of creation: 2007
Date of revision:
Handle: RePEc:unm:unumer:2007029

Contact details of provider:
Postal: P.O. Box 616, 6200 MD Maastricht
Phone: (31) (0)43 3883875
Fax: (31) (0)43 3216518
Web page: http://www.merit.unu.edu/
More information through EDIRC

Related research

Keywords: Foreign Direct Investment; Multinational Enterprises; Foreign Affiliates; Public Policy; FDI;

Find related papers by JEL classification:

References

References listed on IDEAS
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.:
as in new window
  1. Kuemmerle, Walter, 1999. "Foreign direct investment in industrial research in the pharmaceutical and electronics industries--results from a survey of multinational firms," Research Policy, Elsevier, Elsevier, vol. 28(2-3), pages 179-193, March.
  2. Metcalfe, J S, 1995. "Technology Systems and Technology Policy in an Evolutionary Framework," Cambridge Journal of Economics, Oxford University Press, Oxford University Press, vol. 19(1), pages 25-46, February.
  3. Preece, Stephen B. & Miles, Grant & Baetz, Mark C., 1999. "Explaining the international intensity and global diversity of early-stage technology-based firms," Journal of Business Venturing, Elsevier, vol. 14(3), pages 259-281, May.
  4. Madsen, Tage Koed & Servais, Per, 1997. "The internationalization of Born Globals: An evolutionary process?," International Business Review, Elsevier, Elsevier, vol. 6(6), pages 561-583, December.
  5. Stiglitz, Joseph E., 2000. "Capital Market Liberalization, Economic Growth, and Instability," World Development, Elsevier, Elsevier, vol. 28(6), pages 1075-1086, June.
  6. Pearce, Robert, 1999. "The evolution of technology in multinational enterprises: the role of creative subsidiaries," International Business Review, Elsevier, Elsevier, vol. 8(2), pages 125-148, April.
  7. Caves, Richard E, 1971. "International Corporations: The Industrial Economics of Foreign Investment," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 38(149), pages 1-27, February.
  8. Moran, Theodore H., 1978. "Multinational corporations and dependency: a dialogue for dependentistas and non-dependentistas," International Organization, Cambridge University Press, Cambridge University Press, vol. 32(01), pages 79-100, December.
  9. Kogut, Bruce & Chang, Sea Jin, 1991. "Technological Capabilities and Japanese Foreign Direct Investment in the United States," The Review of Economics and Statistics, MIT Press, vol. 73(3), pages 401-13, August.
  10. Julian Birkinshaw, 1996. "How Multinational Subsidiary Mandates are Gained and Lost," Journal of International Business Studies, Palgrave Macmillan, vol. 27(3), pages 467-495, September.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Duysters, Geert & Lokshin, Boris, 2007. "Determinants of alliance portfolio complexity and its effect on innovative performance of companies," MERIT Working Papers, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) 033, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:unm:unumer:2007029. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ad Notten).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.