Foreign Direct Investment and Development: The New Policy Agenda for Developing Countries and Economies-In-Transition

Contents
......Page 8
Preface......Page 12
Acknowledgments......Page 15
Introduction and Synopsis......Page 16
I FDI in Developing Countries and Economies in Transition: Opportunities, Dangers, and New Challenges
......Page 28
Introduction......Page 30
The Benign Model of FDI and Development......Page 34
The Malign Model of FDI and Development......Page 35
Theory and Evidence about Market Structure and FDI......Page 36
Three Earlier Net Assessments of the Impact 
of FDI on Development......Page 39
II Host-Country Policies to Shape Foreign Investor Activities:Investment Promotion, Domestic-Content Requirements, and Export-Performance Requirements
......Page 42
Introduction
......Page 44
Ch 2 Theoretical Considerations about Host-Country Intervention in Investment Promotion, Domestic-Content Requirements, and Export-Performance Requirements 
......Page 46
Ch 3 Foreign Firms and Host-Country Investment Promotion
......Page 52
Evidence about Domestic-Content Requirements......Page 56
Reasons for the Adverse Impact of Domestic-Content Requirements
......Page 58
The Adverse Political Economy of Domestic-Content Requirements
......Page 60
Ch 5 FDI and Export-Performance Requirements
......Page 64
FDI and Exports in the Automotive Sector: Mexico, Brazil, and Thailand......Page 66
Export-Performance Requirements for Foreign Investors and Global Sourcing in the Automotive Sector: A Preliminary Assessment......Page 76
FDI and Exports in the Petrochemical Sector......Page 78
FDI and Exports in the Electronics/Computer Sector......Page 86
Export-Performance Requirements and the Globalization of the Automotive, Petrochemical, and Electronics/Computer Sectors......Page 96
Ch 6 Comparative Advantage and the Globalization of Manufacturing Industries: The Struggle to Tilt the Playing Field for International Investment......Page 100
Market Failure Rationales for Host-Country Intervention......Page 101
Second-Best Rationales for Host-Country Intervention......Page 109
Strategic-Trade Struggles and the Intersection between Trade Protection and Investment Diversion......Page 117
Policy Implications for Using Foreign Investors to Penetrate International Markets: The Dilemmas of Passivism, Escalation, and Playing for a Draw
......Page 128
III Host-Country Policies to Constrain Ownership on the Part of Foreign Direct Investors: Joint-Venture Mandates and Technology-Licensing Requirements
......Page 130
Introduction
......Page 132
Ch 7 FDI and Joint-Venture Requirements
......Page 134
Joint-Venture Requirements and Technology Transfer......Page 136
Joint-Venture Requirements and Export Performance
......Page 138
Joint-Venture Requirements and Backward Linkages to the Domestic Industrial Base......Page 140
Ch 8 FDI and Technology-Licensing Requirements
......Page 142
Mandatory Technology Licensing and Technological Deepening......Page 143
Technology-Licensing Requirements and Industrial Deepening......Page 146
Technology-Licensing Requirements and Enhanced Control over National Champions......Page 148
Technology-Licensing Requirements and National Security
......Page 149
IV Host-Country Policies toward Natural-Resource and Private-Infrastructure Investment
......Page 152
Introduction
......Page 154
Ch 9 Structural Vulnerability, Imperfect Contracts, and "Political Risk" in Natural-Resource and Private-Infrastructure Projects
......Page 156
Structural Vulnerability and the Obsolescing Bargain......Page 157
Multilateral Mechanisms to Enhance the Stability of Investment Agreements......Page 160
A Balance between Stability and Flexibility
......Page 164
V Findings, Conclusions, and Policy Implications
......Page 166
Introduction
......Page 168
Ch 10 Incorporating FDI into the Development Process: From Traditional Concerns to a New Agenda for Action......Page 170
Market Failures, Market Interventions, and the Struggle for International Corporate Operations
......Page 171
A New Policy Agenda toward FDI......Page 174
Tactics for Pursuing the New FDI Agenda:Following a Path of Unilateral Restraint......Page 176
Tactics for Pursuing the New Agenda toward FDI: Negotiating a Grand Bargain within a Broadened and Revised MAI 
......Page 178
Leadership, Vision, and a New North-South Dialogue
......Page 183
References
......Page 184
Index
......Page 196