ABSTRACT

Asking the question of whether Foreign Direct Investment (FDI) is 'integrating' the world economy, this comprehensive volume consists of an overview of current FDI research.

While the term 'integrating' is often used, the real test should be whether FDI is instrumental in bringing per capita incomes across countries closer together. By this yardstick, the answer is no. The forces driving FDI are strong; they lead it to flow to countries with attractive investment conditions and, moreover, investors have a tendency to follow each other. It is in such settings that FDI appears to have the most beneficial effect in raising growth.

Written by an authority in this area, Ashoka Mody, this book will greatly appeal to all international and development economists.

chapter 1|30 pages

Is FDI integrating the world economy?

part |2 pages

PART I FDI determinants: agglomeration, information, and policy

chapter 2|20 pages

International investment location decisions: the case of U.S. firms

ByWITH DAVID WHEELER

chapter 3|22 pages

Japanese and U.S. firms as foreign investors: do they march to the same tune?

ByWITH KRISHNA SRINIVASAN

chapter 4|17 pages

Private information for foreign investment in emerging economies

ByWITH YUKO KINOSHITA

chapter 5|19 pages

The global disconnect: The role of transactional distance and scale economies in gravity equations

ByWITH PRAKASH LOUNGANI AND ASSAF RAZIN

chapter 6|22 pages

Japanese multinationals in Asia: Capabilities and motivations

ByWITH SUSMITA DASGUPTA AND SARBAJIT SINHA

part |2 pages

PART II FDI benefits: growth, investment, and efficiency

chapter 8|18 pages

Growing up with capital flows

ByWITH ANTU PANINI MURSHID

chapter 10|32 pages

The role of cross-border mergers and acquisitions in Asian restructuring

ByWITH SHOKO NEGISHI