IDEAS home Printed from
   My bibliography  Save this article

Can Latin America Learn from Developing Asia’s Focused FDI Policies?


  • Michael Mortimore

    () (Economic Commission for Latin America and the Caribbean, Santiago)


This paper argues that foreign direct investment (FDI) can make a very important contribution to development. The nature and level of benefits for developing countries and transition economies from FDI has become a much more controversial topic. While the accelerated growth of surging Asian economies, especially China, suggest that FDI in the right circumstances can be considered an important ingredient for economic advance, the debate over technological and other spillovers from FDI has shifted decisively against the existing presumptions regarding ‘automatic’ FDI benefits to the point of questioning their very existence based on East European and Latin American experiences. As a consequence, more and more developing countries and transition economies now make significant efforts to compete to attract ‘quality’ FDI at the same time that they also seek to ensure that they effectively benefit from the FDI they receive. To understand this phenomenon, this paper examines existing statistical information on FDI and the operations of transnational corporations (TNC) in the context of the new global political economy in which developing countries and transition economies are becoming much more assertive. In this new setting many developing countries and transition economies see themselves as needing general FDI less but wanting quality FDI more. For these reasons, developing countries and transition economies are increasingly prone to use active and focused policies to both attract quality or priority FDI and to ensure that the benefits from such coincide with their developmental priorities.(Please Puchase For Further Reading)

Suggested Citation

  • Michael Mortimore, 2009. "Can Latin America Learn from Developing Asia’s Focused FDI Policies?," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 1(1), pages 106-133, June.
  • Handle: RePEc:umk:journl:v:1:y:2009:i:1:p:106-133

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Sabatier, Paul A., 1986. "Top-Down and Bottom-Up Approaches to Implementation Research: a Critical Analysis and Suggested Synthesis," Journal of Public Policy, Cambridge University Press, vol. 6(01), pages 21-48, January.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Foreign direct investment; transnational corporations; industrial policy; development;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:umk:journl:v:1:y:2009:i:1:p:106-133. 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: (Teoh Wern Jun). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.