Globalization and the Quality of Foreign Direct Investment

NAGESH KUMAR

Nagesh Kumar is Deputy Director-General, Research and Information System for Developing Countries, New Delhi. He is co-editor of the South Asia Economic Journal. He was previously Research Fellow with the United Nations University Institute for New Technologies, Maastricht, The Netherlands, and has been the First recipient of the Exim Bank of India's International Trade Research Award.

With globalization, in recent years, FDI has received considerable attention in the policy analysis circles. Developing countries have striven hard to attract more of it to fill the resource gaps that constrain development. Consequently, governments have often overlooked the quality of these inflows in terms of developmental impact and favourable externalities generated such as spillovers of knowledge.

This book makes an early attempt to define the parameters of quality of FDI from a development perspective. It evolves analytic models with structural, geopolitical, and policy factors as determinants to explain the patterns of quantity and quality of inflows across countries, broad sectors of industry and over time.

The findings of the volume enable countries to assess their comparative advantage for specific types of inflows.

Analysing implications of the emerging WTO regime in the light of findings, the author draws policy lessons for the ongoing multilateral trade negotiations on investment.

This is an invaluable resource for researchers across the globe, policy makers and development experts.

0195658590 2002 215 x 140 mm 273 pp. Rs 595

'For policy makers, this book is rich in guidance on how to strengthen the attractiveness of developing countries for quality foreign investments and how to design the kinds of foreign investment policies that would do so’.

— Professor Lynn K. Mytelka,Director, UNU/INTECH, Maastricht, The Netherlands

Contents

Foreword by Lynn Mytelka
Preface
List of Tables

Chapter 1.

Introduction

Part A: Mnes And Host Country Industrialization

Chapter 2.

MNE Output and Its Localization: Patterns and Determinants

Chapter 3.

MNE Presence and Its Localization in Technology Intensive and Other Industries

Part B: Mnes and Export-Oriented Production in Host Countries

Chapter 4.

Export-oriented Production by MNEs in the Host Countries: Trends and Patterns

Chapter 5.

Determinants of Location of Export-Oriented Production by MNEs

Chapter 6.

Patterns of Export-Oriented Production: Analysis of Sectoral, Home Country, and Regional Differences

Part C: Mnes and Innovation in Host Countries

Chapter 7.

MNEs and Innovative Activity: Locational Patterns

Chapter 8.

Determinants of Location of Overseas R&D of MNEs

Chapter 9.

Conclusions and Policy Implications

Data Appendix (with Marcel Spijkerman)

Bibliography

Index

OXFORD
UNIVERSITY PRESS

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