chapter  12
4 Pages

Concluding remarks

Summary Research questions One of the most important aspects of foreign direct investment is that it embodies advanced technologies and business practices which can spill over to domestic firms via such channels as labour mobility, backward and forward linkages, export of multinational affiliates and horizontal effects. To pursue the benefit of FDI productivity spillovers, many developing countries adopt preferential FDI policies characterised by swapping domestic market access for advanced foreign technology and productivity.