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    Is foreign direct investment good for the poor? A review and stocktake

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    Author(s)
    Sumner, Andrew
    Editor(s)
    Eade, Deborah
    Publication date
    2005-06-01
    Subject
    Approach and methodology
    Private sector
    Keywords
    Development methods
    Development in Practice Journal
    DiP
    
    Metadata
    Show full item record
    Publisher(s)
    Oxfam GB
    Routledge
    Journal
    Development in Practice
    URI
    http://hdl.handle.net/10546/130758
    DOI
    10.1080/09614520500076183
    Document type
    Journal article
    Language
    English
    Description
    Few issues in the development process raise as much heat as the role of the international private sector in the form of transnational corporations (TNCs) and foreign direct investment (FDI). This article reviews the most recent research on the impact of FDI on economic growth and poverty reduction in developing countries. A brief history of FDI is given. This is followed by discussion of the conceptual transmission mechanisms linking FDI, growth, and poverty. The available empirical evidence is then discussed. It is argued that it is not a question of whether FDI is good or bad for social and economic development, but that its impact is determined by the terms upon which FDI is accepted. Although overall the evidence on FDI, growth, and poverty is not conclusive, research has had a tendency to suggest that the benefits of FDI are linked to the FDI policy regime; and that the current orthodoxy of maintaining a highly liberal FDI policy regime leads to a situation whereby developing countries have a precarious trade-off to make between attracting FDI and maintaining policy instruments to extract the benefits of any inflows.<p>This article is hosted by our co-publisher Taylor & Francis.</p>
    Pages
    17
    ISSN
    0961-4524
    EISSN
    1364-9213
    ae974a485f413a2113503eed53cd6c53
    10.1080/09614520500076183
    Scopus Count
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