Foreign investment and competition

Aristides Almeida Filho ()

Brazilian Journal of Political Economy, 2000, vol. 20, issue 1, 19-34

Abstract: At the international level, liberalization requires further mobility of technologyand labour than is currently available across countries. Apart from the international movementsof factors of production, this paper argues that the culture of liberalization needs tobe complemented by a competition culture able to tackle both the firm and the consumerview. We start with definitions of Foreign Direct Investment (FDI) and contestability. Constraintson FDI and competition policy are then examined. We stress that, to optimize thebenefits of FDI, critical variables should be taken into account. Finally, we conclude by statingthat there is no either/or between markets and State intervention. JEL Classification: F21; F68.

Keywords: International capital flows; foreign direct investment; competition; interventionism (search for similar items in EconPapers)
Date: 2000
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