Inward FDI and the Size of the Market: Hosting MNCs or Promoting Domestic Companies?

Akinori Tomohara

Chapter 9 in Positive and Normative Analysis in International Economics, 2012, pp 157-171 from Palgrave Macmillan

Abstract: Abstract One of the recent policy concerns in the area of development is whether globalization really helps to improve standards of living in developing countries. International organizations advocate the merit of accessing the global economy via foreign direct investment. Anti-globalization movements do not necessarily agree with this view. Those opposing globalization argue that self-interested multinational companies exploit the resources of developing countries and impair development. Thus, for the purpose of long-run economic growth, it may be better to protect domestic infant industries rather than rely on foreign capital.

Keywords: Foreign Direct Investment; Host Country; Trade Openness; Final Good; Intermediate Good (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-34820-2_10

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DOI: 10.1057/9780230348202_10

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