The contribution that inward foreign direct investment (FDI) makes to development has been examined in a number of contexts including the relationship between inward FDI and new firm formation; growth; innovation, exports and competitiveness. However, no debate has proved so contentious, or so long lasting as that concerning the extent to which inward FDI stimulates productivity growth in the host country.
Bibliographical noteThis is a post-peer-review, pre-copyedit version of an article published in European journal of developmental research. The definitive publisher-authenticated version Narula, R., & Driffield, N. (2012). Does FDI cause development? The ambiguity of the evidence and why it matters. European journal of developmental research, 24(1), 1-7 is available online at: http://www.palgrave-journals.com/ejdr/journal/v24/n1/full/ejdr201151a.html
- government policies
Narula, R., & Driffield, N. (2012). Does FDI cause development? The ambiguity of the evidence and why it matters. European Journal of Development Research, 24(1), 1-7. https://doi.org/10.1057/ejdr.2011.51