Do host countries really benefit from inward foreign direct investment?

Jin, Byungchae; Garcia, Francisco; Salomon, Robert

It was with great interest that we read Perspective No. 84 addressing the impact of inward foreign direct investment (IFDI) on technological innovation and entrepreneurship. In that issue, Pathak, Laplume, and Xavier-Oliveira laid out arguments for and against IFDI. They suggested that we have, for far too long, extolled the benefits of IFDI for developing economies, without properly accounting for its costs. They noted that there are genuine concerns that we ought not to overlook, and that we should pay special attention to the impact of IFDI on local innovation and entrepreneurship. Understanding the relationship between IFDI and innovation is an important policy issue, as it can help inform whether, and how, IFDI can stimulate economic growth.


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More About This Work

Academic Units
Vale Columbia Center on Sustainable International Investment
Vale Columbia Center on Sustainable International Investment
Columbia FDI Perspectives, 98
Published Here
July 14, 2013


A Chinese version of this paper is available at .