The investment development path of newly developed countries
According to foreign direct investment (FDI) path theory, developed countries are grouped into two phases, known as the fourth and fifth phases. Fourth-phase countries (newly developed economies) show a technological and institutional "gap" in comparison with fifth-phase economies, which explains their lesser capacity to generate direct investment. We found that these countries, which were less developed economies in the 1980s, had undergone a deep structural transformation. This transformation encouraged the multinationalization of firms, which is a differentiating element and one outcome of their development process. These results have clear policy implications: the governments of newly developed countries should take steps to increase the endowment of knowledge-intensive assets. The main contribution of this paper is the theoretical reformulation of the fourth phase of the investment development path theory.
Volume (Year): 12 (2005)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/CIJB20 |
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/CIJB20|
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.:
- Narula Rajneesh & Wakelin Katharine, 1995.
"Technological competitiveness, trade and foreign direct investment,"
013, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
- Narula, Rajneesh & Wakelin, Katharine, 1998. "Technological competitiveness, trade and foreign direct investment," Structural Change and Economic Dynamics, Elsevier, vol. 9(3), pages 373-387, September.
- John Dunning & Chang-Su Kim & Jyh-Der Lin, 2001. "Incorporating Trade into the Investment Development Path: A Case Study of Korea and Taiwan," Oxford Development Studies, Taylor & Francis Journals, vol. 29(2), pages 145-154.
When requesting a correction, please mention this item's handle: RePEc:taf:ijecbs:v:12:y:2005:i:1:p:123-137. 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: (Michael McNulty)
If references are entirely missing, you can add them using this form.