Foreign Direct Investment and the World Economy
By Ashoka Mody
Routledge – 2007 – 272 pages
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.
1. Is FDI Integrating the World Economy? 2. International Investment Location Decisions: the Case of U.S. Firms 3. U.S. and Japanese Investors: Do the March to the Same Tune? 4. Private Information for Foreign Investment in Emerging Economies 5. The Global Disconnect: The Role of Transactional Distance and Scale Economies in Gravity Models 6. Japanese Multinationals in Asia: Drivers and Attractors 7 Explaining Industrial Growth in Coastal China: Economic Reforms…and What Else? 8. Growing Up with Capital Flows 9. How Foreign Participation and Market Concentration Impact Bank Spreads: Evidence from Latin America 10. The Role of Cross-Border Mergers and Acquisitions in Asian Restructuring
Ashoka Mody is Assistant Director at the European Department, International Monetary Fund.