Do we need a special theory of foreign direct investment for extractive industries?
Purpose - The purpose of this paper is to examine the extent to which we require a special theory of foreign direct investment (FDI) for extractive industries. Design/methodology/approach - The paper examines the general theory of FDI using internalising theory and location theory and augments this by using special features that apply to the extractive industries including the obsolescing bargaining argument. Findings - The paper shows that a special theory is clearly required to explain the particular circumstances of extractive industries. However, the received theory relying on internalisation and location elements performs well. Practical implications - Despite the current issues around extractive industries and its peculiarities, analysis of the reasons for FDI (including Chinese FDI) remains explicable by standard theory. Originality/value - FDI in the extractive industry provides a good test of the general theory of FDI and a special theory nested within this gives a great deal of insight into current issues of FDI in extractive industries.
Volume (Year): 1 (2008)
Issue (Month): 2 (August)
|Contact details of provider:|| Web page: http://www.emeraldinsight.com|
|Order Information:|| Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK|
Web: http://www.emeraldinsight.com/jcefts.htm Email:
When requesting a correction, please mention this item's handle: RePEc:eme:ceftpp:v:1:y:2008:i:2:p:93-104. 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: (Virginia Chapman)
If references are entirely missing, you can add them using this form.