ABSTRACT
This chapter examines exogenous development and identifies both the strength and weaknesses of endogenous development approaches. It looks at the relationship between exogenous and endogenous growth strategies. The chapter considers the range of factors modern corporations use when selecting a new site for a production or other facility. It explains which site location factors fall under the direct control of communities, and which can only be influenced through lobbying or other action. The chapter also examines foreign direct investment (FDI) as a subset of the broader set of inward investment strategies, and considers its capacity to link communities to global production networks. FDI is a valuable source of capital for the creation of productive facilities and employment and is therefore attractive to many communities and regions. Foreign direct investment is defined by the World Bank as the net inflows of investment to acquire a lasting management interest in an enterprise operating in an economy other than that of the investor.
