Skill Upgrading in Developing Countries: Has Inward Foreign Direct Investment Played a Role?

Matthew J. Slaughter

Chapter 6 in Labor and the Globalization of Production, 2004, pp 121-145 from Palgrave Macmillan

Abstract: Abstract An important part of globalization in recent years has been the ongoing rise in foreign direct investment (FDI). UNCTAD (2000) reports that from 1979 to 1999, the ratio of world FDI stock to world gross domestic product rose from 5 percent to 16 percent and the ratio of world FDI inflows to global gross domestic capital formation rose from 2 percent to 14 percent. One con-sequence is that an increasing share of countries’ output is accounted for by foreign affiliates of multinational enterprises (MNEs). The foreign-affiliate share of world production is now 15 percent in manufacturing and other tradables (Lipsey et al., 1998).

Keywords: Foreign Direct Investment; Host Country; Domestic Firm; Foreign Direct Investment Inflow; Foreign Affiliate (search for similar items in EconPapers)
Date: 2004
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-52396-8_6

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DOI: 10.1057/9780230523968_6

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