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How to Attract Quality FDI?

Author

Listed:
  • Moran, Theodore H.
  • Görg, Holger
  • Seric, Adnan
  • Krieger-Boden, Christiane

Abstract

Foreign direct investment in developing countries has got a bad reputation in some popular discussions where it is set tantamount to first world’s postcolonial exploitation of the raw materials and cheap labour from the third world, associated with pictures of leaking oil fields and collapsing factories. While this does happen, data show that FDI in developing countries increasingly flows to medium- to high-skilled manufacturing sectors rather than to resource-intensive and low-skilled sectors. And as skill levels needed by FDI increase, so do wage levels (ILO 2007, Coniglio et al. 2015). Accordingly, many emerging economies have built their success to a considerable degree on FDI flows to cover their enormous need for investments. The trick here is to attract "Quality FDI" that links foreign investors into the local host country economy. The current KCG Policy Paper provides evidence-based suggestions of how developing countries may attract Quality FDI successfully.

Suggested Citation

  • Moran, Theodore H. & Görg, Holger & Seric, Adnan & Krieger-Boden, Christiane, 2017. "How to Attract Quality FDI?," KCG Policy Papers 2, Kiel Centre for Globalization (KCG).
    • Handle: RePEc:zbw:kcgpps:2
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    File URL: https://www.econstor.eu/bitstream/10419/175675/1/KCG-Policy-Paper-2.pdf
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    References listed on IDEAS

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    Cited by:

    1. Langhammer, Rolf J. & Liu, Wan-Hsin, 2018. "China between external pressure and domestic policy reforms: In search of a balance," Kiel Policy Brief 117, Kiel Institute for the World Economy (IfW Kiel).
    2. Oliver Godart & Holger Goerg & Aoife Hanley, 2020. "Harnessing the Benefits of FDI in African Countries," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 21(02), pages 32-37, July.
    3. Görg Holger, 2019. "Ausländische Direktinvestitionen in Deutschland – die große Angst vor China," Zeitschrift für Wirtschaftspolitik, De Gruyter, vol. 68(1), pages 28-35, May.
    4. Mao, Haiou & Görg, Holger & Fang, Guopei, 2023. "Time to say goodbye? The impact of environmental regulation on foreign divestment," Kiel Working Papers 2255, Kiel Institute for the World Economy (IfW Kiel).
    5. Kolthoom Alkofahi, 2020. "The Effect of Foreign Direct Investment on the Unemployment Rate in Saudi Arabia," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 12(10), pages 1-1, October.
    6. Mao, Haiou & Görg, Holger & Fang, Guopei, 2023. "Time to Say Goodbye? The Impact of Environmental Regulation on Foreign Divestment," IZA Discussion Papers 16406, Institute of Labor Economics (IZA).
    7. Mao, Haiou & Görg, Holger & Fang, Guopei, 2023. "Time to say goodbye? The impact of environmental regulation on foreign divestment," KCG Working Papers 27, Kiel Centre for Globalization (KCG).
    8. Görg Holger, 2019. "Ausländische Direktinvestitionen in Deutschland – die große Angst vor China," Zeitschrift für Wirtschaftspolitik, De Gruyter, vol. 68(1), pages 28-35, May.

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