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Assessing the Need for Controls Over Inward Direct Investment in Developing Countries

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  • Gray H. Peter

    (Professor Emeritus of International Economics and Business, Rutgers University)

Abstract

Singh's arguments against the creation of a laissez-faire system governing international flows of foreign direct investment are broadened to recognize the implications for a laissez-faire system of the lesser degree of economic sophistication of host governments in developing countries. Given a close interface between foreign ways of doing business and the benefits of inward FDI, the paper addresses two areas in which government regulation may not be adequate to the tasks imposed: issues of worker and consumer safety; and issues of deliberate exploitation of the host country by executives of the parent company or of the local affiliate.

Suggested Citation

  • Gray H. Peter, 2004. "Assessing the Need for Controls Over Inward Direct Investment in Developing Countries," Global Economy Journal, De Gruyter, vol. 4(2), pages 1-15, December.
    • Handle: RePEc:bpj:glecon:v:4:y:2004:i:2:n:4
    DOI: 10.2202/1524-5861.1022
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    Cited by:

    1. Noy, Ilan & Vu, Tam B., 2007. "Capital account liberalization and foreign direct investment," The North American Journal of Economics and Finance, Elsevier, vol. 18(2), pages 175-194, August.
    2. Ajit Singh, 2012. "Globalisation and the Regulation of FDI: Recent Proposals," Chapters, in: Kern Alexander & Rahul Dhumale (ed.), Research Handbook on International Financial Regulation, chapter 10, Edward Elgar Publishing.

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