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</td><td colspan="4"><p>A. FDI Distribution (%) </p></td><td colspan="4"><p>B. Per Capita FDI (US$) </p></td></tr><tr><td colspan="2"><p>1980s </p></td><td colspan="2"><p>1990s </p></td><td colspan="2"><p>1980s </p></td><td colspan="2"><p>1990s </p></td></tr><tr><td><p>Early </p></td><td><p>Late </p></td><td><p>Early </p></td><td><p>Late </p></td><td><p>Early </p></td><td><p>Late </p></td><td><p>Early </p></td><td><p>Late </p></td></tr><tr><td><p>AFR </p></td><td><p>6.0 </p></td><td><p>8.8 </p></td><td><p>4.0 </p></td><td><p>3.9 </p></td><td><p>2.7 </p></td><td><p>2.9 </p></td><td><p>4.2 </p></td><td><p>10.6 </p></td></tr><tr><td><p>EAP </p></td><td><p>15.3 </p></td><td><p>40.2 </p></td><td><p>48.7 </p></td><td><p>37.3 </p></td><td><p>1.8 </p></td><td><p>4.0 </p></td><td><p>17.8 </p></td><td><p>34.2 </p></td></tr><tr><td><p>ECA </p></td><td><p>0.1 </p></td><td><p>0.6 </p></td><td><p>8.6 </p></td><td><p>13.2 </p></td><td><p>0.1 </p></td><td><p>0.3 </p></td><td><p>12.6 </p></td><td><p>54.8 </p></td></tr><tr><td><p>LAC </p></td><td><p>35.4 </p></td><td><p>38.2 </p></td><td><p>29.8 </p></td><td><p>39.8 </p></td><td><p>16.9 </p></td><td><p>14.1 </p></td><td><p>38.4 </p></td><td><p>137.5 </p></td></tr><tr><td><p>MENA </p></td><td><p>42.5 </p></td><td><p>10.1 </p></td><td><p>7.4 </p></td><td><p>3.5 </p></td><td><p>32.5 </p></td><td><p>5.7 </p></td><td><p>12.7 </p></td><td><p>16.8 </p></td></tr><tr><td><p>SAR </p></td><td><p>0.6 </p></td><td><p>2.1 </p></td><td><p>1.5 </p></td><td><p>2.3 </p></td><td><p>0.1 </p></td><td><p>0.3 </p></td><td><p>0.8 </p></td><td><p>2.9 </p></td></tr></tbody></table> <p>Source: World Bank, Global Development Finance, 2002. </p> <p>4. Such an overall picture changes once again when the sizes of the regions are taken into account. On a per capita basis, the achievements of Latin American and Caribbean countries over-shadow those of all other countries, while the performance of countries in South Asia, though improving, still lags far behind. (Table 2B.) </p> <p>2 </p> <p>1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 </p> <p>2001e </p> <p>5. What these basic facts tell us is that more than any other economic forces, FDI is driving the process of globalization by creating an increasingly tighter global production network. However, there are great discrepancies in the extent to which countries take part in this network. Not only significant gaps exist between developed and developing countries and among the different regions of the developing world, large and increasing disparities prevail even within the same region. (Table 3.) This phenomenon leads us to many questions: What are the roles of FDI in economic development? What determines the size and location of FDI flows? And what the states can do to reap the benefits of FDI while avoiding its negative impacts in this globalized world? </p> <p>Table 3: Standard Deviations in FDI Flows within Each Region (US$ millions) </p> <p>Source: IMF International Financial Statistics, 2002. </p> <p>6. This paper attempts to provide some insight to these questions through a brief review of the existing evidence on FDI. The role of FDI in economic development is the center of the discussion and is analyzed in depth in the next section. Both its positive and negative impacts are examined, as well as the channels through which FDI interacts with local economies. The paper then reviews the vast empirical evidence on the determinants of FDI flows, which provides guidance on the pre-conditions that the states need to create to draw out the positive forces of FDI and to prevent its negative effects from harming their economies. </p> <p>II. The role of FDI in Economic Development </p> <p>7. Economic development is an all-encompassing concept. It centers on economic and social progress, but also entails many different aspects that are not easily quantified, such as political freedom, social justice, and environmental soundness.1Without a doubt, all these matters combine to contribute to an overall high standard of living. However, empirical evidence has amply demonstrated that all these varied elements of economic development correlate with economic growth. That is, as a general rule, countries with faster economic growth have more rapid improvement in health and education outcomes, progressively freer political system, increasingly more equitable distribution of wealth, and enhanced capacity for environmental management. Therefore, while economic growth does not bring about automatically other aspects of social, institutional and </p> <p>1The United Nation Charter of 1944. </p> <table><tbody><tr><td> </td><td><p>1980 </p></td><td><p>1985 </p></td><td><p>1990 </p></td><td><p>1995 </p></td><td><p>2000 </p></td></tr><tr><td><p>AFR </p></td><td><p>304 </p></td><td><p>302 </p></td><td><p>301 </p></td><td><p>366 </p></td><td><p>318 </p></td></tr><tr><td><p>EAP </p></td><td><p>214 </p></td><td><p>392 </p></td><td><p>1,014 </p></td><td><p>7,934 </p></td><td><p>9,010 </p></td></tr><tr><td><p>ECA </p></td><td><p>- </p></td><td><p>- </p></td><td><p>68 </p></td><td><p>1,120 </p></td><td><p>1,960 </p></td></tr><tr><td><p>LAC </p></td><td><p>485 </p></td><td><p>463 </p></td><td><p>555 </p></td><td><p>1,919 </p></td><td><p>6,329 </p></td></tr><tr><td><p>MENA </p></td><td><p>725 </p></td><td><p>258 </p></td><td><p>446 </p></td><td><p>544 </p></td><td><p>661 </p></td></tr><tr><td><p>SAR </p></td><td><p>26 </p></td><td><p>47 </p></td><td><p>95 </p></td><td><p>760 </p></td><td><p>790 </p></td></tr></tbody></table> <p>3 </p> <p>environmental improvements, without economic growth, there is limited prospects for such achievements. </p> <p>8. In this context, the paper examines the role of FDI in economic development as a key ingredient for successful and suXXXXXXXXX economic growth and as XXXX of a mechanism to XXXXXX development. This section XX the paper aims to XXXXXXXXX the XXXX important XXXXXXXX XXXXXXX which XXX makes a significant and irreplaceable impact on XXX economic XXXXXXXXXXX XX XXX host XXXXXXXXX. XX XXX XXXX XXXX, it XX important to recognize that, XXXX all things, XXX XX XXX XXX XXXX XX XXX. A separate discussion XX devoted XX the potential XXXXXXXX impacts of FDI flows on host XXXXXXXXX. </p> <p>X. XX XXXXXXX to Economic Growth </p> <p>9. XXX potential XXX fast income growth has expanded drastically XXXX time. Before the industrial revolution, it took European XXXXXXXXX XXXX 350 years for income XXX XXXXXX XX XXXXXX. XX the industrial revolution accelerated in the 19thcentury, XXXXXXX, XXX lead country, was able XX XXXXXX XXX per XXXXXX income in just over 60 years. After the XXXXX XXX II and especially towards the end of the twentieth XXXXXXX, many developing XXXXXXXXX, such XX Japan, XXXXXXXX, Chile, Ireland, and XXX XXXX XXXXXXXXXX East XXXXX XXXXXXXXX, XXXXXXX XX double per XXXXXX income in XXXX XXXX 10 XXXXX. (Table 4.) For XXX XXXXX time in history, it is now XXXXXXXX for a poor XXXXXX from an XXXXX-XXXXXXXXX country XX rise from poverty to a XXXXXXXXXX XXXXXXXXXXX life within a XXXXXX life span. </p> <p>Table 4: Time XXXXXX to Double Income </p> <p>XXXXXX: Crafts (XXXX). </p> <p>XX. Just XXXX is it XXXX XXXXX such rapid progress XXXXXXXX? Economic studies offer many XXXXXXXXX explanations. XXXXXXXXX XX one recent XXXXXX XXXXXX, XXXX XXXX XXXXXXXX growth can be XXXXXXXXX XX XXX XXXXXXXXXXX of XXXXXX in its XXXXXXX, i.e. XXX XXXXXXXXX in factor XXXXXX (XXXXXXX XXX labor ) and in total XXXXXX XXXXXXXXXXXX (TFP), which XXXXXXXX XXXXXXXXXXXXX XXXXXXXX XXX other efficiency improvements in XXXXXXXX XXXXXXXXXXX.XXX XXXX “XXXXXXXXXX” growth framework, XXX XXX XXXXX its XXXXXXX XX XXXXXXXXXX XXXXXXXXXXXXX to XXX three components of growth: XXX XXXXXXXXX XXXXXXX XXXXX, boosts XXXXX capital accumulation (though usually unmeasured in labor XXXXX), and XXXXXX up technological XXXXXXXX in XXXX countries. XXXXXXXXXXXX, XXX most direct impacts XX XXX XX host economies are through its XXXX in the accumulation XX XXXXXXXXXX </p> <p>XXXXX details XX XXXXXX accounting XXXXXX XXX XX XXXXX in Maddison, X. (1987), “XXXXXX and XXXXXXXX in XXXXXXXX XXXXXXXXXX XXXXXXXXX: techniques XX XXXXXXXXXXXX XXXXXXXXXX,”Journal XX XXXXXXXX XXXXXXXXXX, Vol. XX; and XXXXX, X.J. (1998) “Notes on growth XXXXXXXXXX,” NBER Working Paper No. XXXX. </p> <table><tbody><tr><td><p>XXX-Industrial Revolution </p></td><td><p>350 years </p></td></tr><tr><td><p>XXXXXXX, XXX XXXXXXXXXX Revolution </p></td><td><p>XXX years </p></td></tr><tr><td><p>XXXXXXX, XXX XXXXXXXXXXX </p></td><td><p>XX years </p></td></tr><tr><td><p>XXXX developers, post World War XX </p></td><td><p>XX years or less </p></td></tr></tbody></table> <p>X </p> <p>XXXXXXX XXX the growth of XXX of the recipients. XXXXX two impacts are discussed XXXXXXXXXX XXXXX. </p> <p>X. FDI XXX XXXXXXX Formation </p> <p>XX. From the XXXXXX XXX investment boom after World War II XX XXX East XXXXX XXXXXXXX miracles in XXX 1980s, there XX XXXXX evidence to XXXXXXXXXXX XXXX investment XX a XXX XXXXXXXXXX XX sustained XXXXXX. XXXX XXX XXXX two XXXXXXX in particular, XXX has XXXX to play a XXXXXXX role in most developing XXXXXXXXX’ total investment. (Figure 3.) However, striking XX the XXXX in XXX XXXXXXXXXX XX XXX XXX XXXX in XXXX countries’ resource XXXXX, FDI XX XXXX XXXX of the XXXXX XXXXXXXXX XX XXXXXXX investors in XXXX XXXXXXXXX. XX the same XXXX XXXX foreign XXXXXXXXX mobilize XXXXXXXXX within their own XXXXXXXXX XXXXXXX, their XXXXXXXXXX XXX XXXX raise funds XXXXXXX XXXXX, loans, XXX equity issuances. XX XXX extent that these XXXXXXX XXX in the XXXXXXXXXXXXX capital XXXXXXX, XXXX XXXXXXXX the XXXXX XXXXXXX XX foreign financial resources XXX XXXXXXXXXXX. XXXXXX, as data XXX XXXXXX States transnational corporations XXXXXXX, the flows of XXXXXXXX XXXXXXXXX XX XXXX XXXXXXXXX XXX to the presence XX foreign XXXXXXXXXXX XXXXX XXXXXX XXX XXXXX alone.3 </p> <p>XXXXXX 3: Ratio XX XXX to Gross Fixed XXXXXXX XXXXXXXXX (%) </p> <p>XX XX 14 12 XX </p> <p>8 6 X 2 0 </p> <p>XXX EAP </p> <p>ECA LAC MENA XXX </p> <p>XXXXX 1980s XXXX 1980s Early XXXXX Late XXXXX </p> <p>Source : World XXXX, XXXXX XXXXXXXXXXX XXXXXX, 2002. </p> <p>12. XXXXXXXXX, XXXXXXX XXXXXXXXXXXXX XXXXXXXXXXXX typically XXXX XXXXXX XX a wide variety XX XXXXXXXXX options, the risk-XXXXXXXX cost XX capital is usually XXXXX for XXXX XXXX XXX XXXXXXXX XXXXX from XXXXXXXXXX XXXXXXXXX. This advantage XXXXXXX them to XX more XXXXXXXXXX than XXXXX firms XX XXXXXXXXXX XXXXXXXXXXXXX XXX incentives. </p> <p>XXXXXXX, XXXXX Investment Report, XXXX. </p> <p>5 </p> <p>Consequently, they can undertake XXXXXXXX XXX which domestic XXXXXXXXX XX XXX have XXX capacities to assume or XXXXX are XXXXXXXXXX XXX risky XXX XXXX XXXXXXX XXXXX. As such, XXXX XXXXXXX the XXXXXXXXXX XXXXXXXXX in host XXXXXXXXX. XXXX time, XXXXXXXXXX conducive to domestic investors XXX be established in XXXXXXXXXX that XXX beyond their XXXXXXX XXXXX. XX such cases, FDI also XXXXXX to stimulate domestic XXXXXXXXXX, whereby XXXXXX the XXXXX XXXX XXXXXXX investment XXXXXXX. Empirical XXXXXXX XXXX support to such “XXXXXXXX in” XXXXXXX XX XXX. XX Borensztein et XX (1995), for XXXXXXX, it XXX estimated XXXX XXX total XXXXXXXX in investment XXX between 1.5 and 2.X XXXXX XXX increase in the flows of XXX.X </p> <p>XX. More XXXXXXXXXXX, FDI not XXXX XXXX XX XXXXXXXX financial XXXXXXXXX XXX host XXXXXXX development, it is XXXX XXXX XXXXXX than other forms of XXXXXXXXX. XXXXXXXXX, FDI is XXXXX XX a long-XXXX view of XXX XXXXXX, XXX XXXXXX XXXXXXXXX XXX the structural XXXXXXXXXXXXXXX XX XXX XXXXXXXXX countries. XX XX XXXX less XXXXX to XXXXXXXXX in XXXXXXX situations XXXX XXXX XXXXXXX or portfolio flows. This feature of XXX is XXXXXXX evident XXXX XXXXXX X, which compares XXX coefficient XX variations (XXX higher the XXXXX, the XXXX volatile the resource XXXXX) XX FDI XXXX XXXX XX portfolio investments and other XXXXX of private financial flows (XXXXXX XXXX) XX XXXXXXXXXX XXXXXXXXX XXXXXXX XXXX- XXXX. </p> <p>Figure X: XXXXXXXXXX XX Capital XXXXX in XXXXXXXXXX Countries </p> <p>X.X X.0 5.X 4.X X.0 X.X X.X 0.X </p> <p>XXXXX XXXXX 1980s XXX EAP ECA </p> <p>1990s XXXXX </p> <p>1990s XXXXX XXX XXXX SAR </p> <p>1990s 1980s </p> <p>1990s </p> <p>XXXXX 1990s </p> <p>XXX Portfolio XXXXX </p> <p>Source: World Bank, Global XXXXXXXXXXX XXXXXXX, XXXX. </p> <p>XX. XXXXXXX, XXX XX a much XXXX XXXXXX XXXX XX external XXXXXXXXX than all other XXXXX XX financial XXXXX. XXX XX the XXX XXXXXXXXX for which XXXX are XXXXXXXXX, only XX countries experienced more XXXXXXXXXX in XXXXX XXX XXXXXXX than other forms of XXXXXXXX </p> <p>4Borensztein, X. and X. X. Lee (XXXX), “How XXXX foreign XXXXXX XXXXXXXXXX XXXXXX economic growth?” XXXX XXXXXXX Paper No. XXXX. </p> <p>X </p> <p>XXXXXXX XXXXXXXXX during XXX 1980s, and this XXXXXX was XXXXXXX XX 22 in XXX XXXX XXXXXXXXX 1990s. More XXXXXX data XXXXXXX XXXXXXX the resilience of FDI flows: XXXXXX XXXXXXXXX to XXXXXX XXXXX XXXXXXX XX XXX in the first half of XXXX XXXX – it is the number X XXXXXXXXX XX XXX XXXXX all XXXXXXXXXX XXXXXXXXX (XXXXX China) - XXXXXXX the current XXXXXXXX in that XXXXXXX. </p> <p>15. Finally, even though XXX may XXXX a XXXX-XXXXXXXX XXXXXXXXX, it is essentially equity investment.XXXXXXXX are repatriated only XXXX a project yields return and XXXX XX the profits is routinely reinvested in XXX host XXXXXXX. As such, most XX the risks XXX XXXX XX XXX shareholders of XXX foreign XXXXXXXXX. XXXX XXX marked advantage over bank lending, XXXXX must XX repaid XXXX fixed XXXXXXXX XXXXXXXXXX XX XXX XXXXXXXXXXX XX XXX XXXXXXX for which XXX XXXX XXX used. Moreover, creditors XXXXX XXXX XXXXXXX XXXXXXXXX XX hold XXXX harmless when projects fail. XXXX is XXXXXXXXXX XXXX in times XX systemic financial crisis, when government XXXX-outs are routinely sought XXX obtained by XXX banks, adding XX XXX XXX XXXXXXX XX XXXX XXXXXXX XXXXXXXXX. Therefore, FDI XXXX XX definition not lead to a debt XXXXXX XXX debt XXXXXX XXXX XXXXX XX an issue. </p> <p>X. FDI XXX XXXXXXXXXXXX Growth </p> <p>16. In XXXXXXXXXXX XXXXXXXX XXXXXXXX, productivity growth XXXXXXXX XXX contribution XX XXXXXXXXX XXXXXXXXXXXXX changes XX XXXXXXXX XXXXXX. XXXXXXX, XXX understandings XX XXX XXXXXX XXXXXXX, XXXXXXXXXX with the XXXXXX XX XXX endogenous XXXXXX theory, call for caution in such an XXXXXXXXXXXXXX. XXXXXXXXX on the XXXXXX XX the technology (labor or XXXXXXX saving), XXX XXXXXXXXX of XXX economy, and the XXXX of substitution between factors XX production, XXXXXXXXXXXXX XXXXXX XXX XX either XXXX or less XXXX XXX growth. XX the XXXX time, XXX XXXXXXXXXX XX XXX “XXXX” XXXX of technological advance – XXXXXXXXXXXXXX structure, managerial practices, tacit XXXXXXXXX, XXX. – is increasingly XXXXXXXXXX as an XXXXXXXX XXXX XX XXX XXXXX technological upgrade process, contributing XX the overall XXXXXXXXXXXX growth. </p> <p>17. Whatever XXX precise level XX contribution to XXXXXXXX growth, the importance XX technological XXX XXXXXXXXXXXXXX XXXXXXX has long XXXX XXXXXX XXXXXXXXXXX. XX XXX long pre-XXXXXXXXXX Revolution period, a long term XXXXXX rate XX 0.X percent per year was XXXXXXXXXX XXXXXXXXXX. The technological XXXXXXXXXXXX in late XXXXXXXXXXX XXXXXXX XXXXXXX XXX XXXXXX XXXXXXXXX, but it XXX XXXXX lackluster compared XX the 8 percent annual XXXXXX seen in XXX XXXX XXXXXXXXXX XXXX XXXXX XXXXXXXXX in XXXXXX decades. XXXX like the fast growth in postwar Europe, XXXX XXXXX XXXXXXXX growth of the XXXXXXXXXX countries in XXX XXXXXX XXXX of the 20thcentury owed XXXX to XXX reduction in XXXXXXXX to XXX emulation of XXXXXXXXX and organizational XXXXXXXXXXX from XXX world’s XXXXXXX XXXXXXXXX. Indeed, rather XXXX XX-XXXXXXXXX what had already existed XXXXXXXXX, XXXXX developing countries XXXX were able to XXXXXX XXX imitate the XXXX XXXXXXXX XXXX XXXX XXXXXXXX economies enjoyed XXXXXXXXXXXXX economic growth. XXX developing world XX large, XXX </p> <p>XXXX XXXX-creating XXXXXXXXX XX FDI accounts XXX less XXXX XX XXXXXXX of XXX XXXXXXX of XXX to XXXXXXXXXX XXXXXXXXX XXXXXXX 1990-1998. XXXXXX, XXXXX Investment Report, XXXX. </p> <p>X </p> <p>rapid XXX XXXXXXXXX transfer and XXXXXXXX XX “best XXXXXXXX” XXXXXX XXXXXXX XXXXXXX XXX XXXX essence XX XXXXXXXX XXXXXXXXXXX. </p> <p>18. Best XXXXXXXX may be XXXXXXXXXXX XXXXXX borders XX XXXXXXX XXXXXXXXXX. XXXXXXX XXXXXX XX exports may XXXXXXX XXX XXXXXX for XXXXXXXXX, as well XX some XXXXX XX technical XXXXXXXXXX to XXXXXXXX XXXXX. XXXXXXXX capital goods may embody improved technology. XXXXXXXXXX XXXXXXXXX allows countries XX acquire XXXXXXXXXXX. XXXXXXXXXXX transmit XXXXXXXXX. XXX, arguably the XXXX XXXXXXXXX XXXXX of XXXXXXXXXXXX best XXXXXXXX is XXX XX XXXXXXX investment XXXXX XX XXXXXXX and integrate XXXXXXXX XXXX all XX the XXXXX mechanisms.XXX XXXX, XXX XXXX XXXXXXXXX XXXXXXX XX XXX is XXXX it provides, along XXXX XXXXXXXXX XXXXXXXXX, XXXXXX XX XXX whole range XX technological, XXXXXXXXXXXXXX and skill assets, as well XX the markets XX XXX parent company. With few exceptions, the vast XXXXXXXX XX the XXXX-growing economies relied XXXXXXX XX XXX XX jump XXXXX XXX sustain XXXXX rapid economic XXXXXXXXXXXXXX.X </p> <p>19. XXX XXXXXXXXX best XXXXXXXX in XXX XXXX: internal XXXXXXXXX XX technology XXX skills XX XXX foreign affiliates in XXX host XXXXXXX, XXX technological XXXXXXXXX XX a broad section XX XXXXXXXXX XXX institutions within XXX XXXX country. Although the XXXXXXXX XXXXXXXXX of best XXXXXXXX XXXXXXX XXXXXXXXXXX XXX affiliates, XX XXX extent that foreign-XXXXX XXXXX outperform XXXXXXXX counterparts, XXXXX XXXXXXXX XXXXX XXXXXXXXXXX a valuable XXXXX XX XXX host XXXXXXX.8First of all, many XX the XXXXXXXXXXXX are XXXXX on expensive X&D XXXXXXXX to XXXXXXX XXXXXXXX that XXXXX XXXXXXXXX will not XXXX XX unrelated parties. XXXXXX investments XXX thus the only mechanism for XXX host XXXXXXX XX XXXXXX XXX XXXXXX technologies XXX XXXXXX its XXXXXXXXXX XXXX. XXXXXXXX, XXXXXXX foreign XXXXXXXXXX are XXXXXXXXX at the forefront to XXXXXXXXX new management XXX XXXXXXXXXXXXXX techniques, XXXXXXX control XXXXXXXXX, XXX marketing XXXXXXX, they XXXX to XXXXXX best practice XXXX XXXXXXX than local XXXXX. Thanks to their XXXXX XXXXXXXX XXXXXXXX, XXX XXXXXXXXXX may serve XX a XXXX ground of these XXX XXXXXXXXXX in the host XXXXXXX. Finally, XXX XXXX developing XXXXXXXXX, being incorporated into a XXXXXX company’s XXXXXXXXXXXXX XXXXXXXXXX XXXXXXX XX XXX XXXXXXX way for XXXX to XXXX XXXXXX to XXXXXXXX or XXXXXX markets. </p> <p>XX. Nevertheless, the XXXXXXXX XXXXXX of FDI on domestic XXXXXXXX XXXXXX XXXXXXX XX the diffusion XX best practice through XXX XXXXX XXXXXXX at XXXXX. XXXX diffusion process takes place through XXXX XXXX XXXXXXXX: backward XXXXXXXX XXXX local suppliers (XXXXXXXX), forward XXXXXXXX with local producers XXX distributors, XXXXXXXXXX XXXXXXXX </p> <p>XXXXXX, M., X. Aaron, XXX B. XXXXXXXXXXXX (2001), “XXXXXXX direct investment XXX poverty XXXXXXXXX,” Policy Research Working XXXXX No. 2613, XXX XXXXX XXXX. 7Japan and XXXXX are XXXXXXXXXXX the XXXX XXXXXXXX XX XXXXXXXXX XXXXX achieved rapid growth XXXX minimal XXXXXXXX on FDI. This XXXXXXXX XX XXXX difficult to XXXXXXXXX, especially in XXXXXXXXX XXXXXXX a solid XXXXX XXXX, a XXXXXXX entrepreneurial XXXXXX, a XXXXXXX bureaucracy, XXX XXXXXXXXX XXXXXXXXX regimes. </p> <p>XXXXX studies show that XXXXXXX XXXXXXXXX XXXXXXXXXX correlates with productivity XXXXXXXXX XX XXX firm. XXX XXXXXXXXXXXX, V. and M. K. Shah (1997), “XXX effects XX XXXXXXX XXXXXXXXX in Africa: XXXXXXXX from Ghana, XXXXX XXX Zimbabwe,” XXXX Paper No. 81, The XXXXX XXXX.; Djankov, S. XXX B. XXXXXXX (XXXX), “XXXXXXX XXXXXXXXXX and XXXXXXXXXXXX growth in XXXXX XXXXXXXXXXX,” XXXXXX Research XXXXXXX Paper XXXX, XXX World XXXX.; XXX XXXXXX, X. and X. E. Harrison (1999), Do domestic XXXXX benefit from XXXXXX foreign XXXXXXXXXX? XXXXXXXX from Venezuela,”XXX American Economic XXXXXX, Vol. 89, No. 3. </p> <p>X </p> <p>XXXX XXXXX competitors, XXX linkages XXXX local institutions such as universities and research XXXXXXXXXX as XXXX as XXXXXXXXXX training centers. To XXXXXXXXXX countries, the XXXX XXXXXXXXX XXXXXXX of XXXXX is XXXXXXX sourcing: XXX XXXXXXXX of XXXXXX XXX services XXXX local instead of foreign suppliers. </p> <p>XX. All XXXXXX (cost, quality, reliability, etc.) being XXXXX, XXXXX XXXXXXXXXXX XX XXXXXXXXX preferred than arm’s length suppliers or in-house production because proximity lowers transaction XXXXX and allows XXX greater flexibility XXX XXXXXXXXXXXXXX. This XX why XXXXXXXX XXX costs of doing so are lower than the resulting savings, foreign XXXXXXXXX XXXX an XXXXXXXX in XXXXXXXXXX XXXXX XXXXXXXXX, XXXXXXX them XXX up XXXXXXXXXX, raise XXXXXXXXXXXXX XXX XXXXX levels, XXXXXX inputs, and expand XXXXXXX. To XXX host XXXXXXX, this XX XXXXX XXX of the most XXXXXXXX XXXXXXXXX for XXXXXXXXXXXX XX XXXX practice. XXX XXXXXXXXXXXXX XX XXXXX XXXXXXXXX XXX in turn lead to XXXXXXX further XXXXXXXXXX to XXX rest of XXX XXXXXXX XXXXXXX demonstration effects, mobility XX trained labor, XXXXXXXXXX spin- offs, and XXXXXXXXXXX XXXXXXX. </p> <p>22. XXX extent XX XXXXX XXXXXXX XXXXXXXXXX XXXXXXXXX backward XXXXXXXX with XXXXX XXXXXXXXX varies from industry to industry XXX XXXXXXX to country. Although there is XXXXXXXXXX XXXXXXX in developing XXXXXXXXX XXXX XXXXXXX affiliates XXXX too XXXXXXX connection with XXX XXXX XX the host XXXXXXX, several empirical studies have demonstrated XXXX in XXXX industries (e.g. XXXXXXXXXX) XXX in XXXXXXXXX XXXXX XXXXXXXX XXXXXXXX XXXXXXXXXX are present, XXXXXXX investors XXXX XXXXXXXXX efforts to XXXXXXX prospective suppliers and relied even more heavily XX XXXXX suppliers than XXXXXXXX XXXXX.X </p> <p>XX. XXXXXXXXXX, XXX XXXXXXXXX XX XXXX practice in XXX host XXXXXXX XXXXXXX on the way XXXXXXXX XXXXXXX XXXX, as well as the absorptive capacities of domestic firms. XXXXX the market XXXXXXXXX structures are XXXXXXXX XXXXXXXXX, FDI XXXXXXX will tend to XX XXXX XXXXXXXXXX and XXXX-seeking in XXXXXX, bringing XXXXXXX benefits XX XXX XXXX country. Similarly, when the XXXXXXXX knowledge base is XXXX and information XX XXXXXXXXXX, few XXXXXXXXX channels will XX established for XXXXXXXXXXXX best practice. </p> <p>B. A XXXXXXXXX for XXXXXX Advancement </p> <p>XX. At XXX same XXXX XXXX FDI serves as a XXXXXXXX XXX rapid XXXXXXXX XXXXXX by enabling XXXXXXXXXX XXXXXXXXX to leapfrog developmental XXXXXX and to XXXXX XX XXXX XXXXXXXX economies, it XXXXXXXXXXX XXXX an important XXXXXXXX for improved social norms. XX XXXX XXXXXXX, FDI XXXXX a major XXXX in the XXXXXX XXXXXXXXXXX XXXXXX XX XXX XXXX countries. XXXX, XXX of the XXXX XXXXXX aspects XX development – XXXXXXXXXX XXX environment - are XXXXXXXXX in XXXXXX. </p> <p>XXXX examples in Lall, S. (1980), “Vertical XXXXXXXXX XXXXXXXX in XXXX: an empirical XXXXX,”XXXXXX XXXXXXXX XX Economics and XXXXXXXXXX, XXX 42, No. X. XX XXXXX; UNCTAD (2000),XXXXX Investment Reporton XXXXXXXXX, Brazil and XXXXXXXX; XXXXX G. and X. Tan (2000),XXXXXXXXX XXXXXXXX and XXXXXXXXXXXX growth: XXXXXXXX XXXX Malaysian manufacturing, The World XXXX; XXX Barnes, J. and R. Kaplinsky (XXXX), “XXXXXXXXXXXXX XXX XXX XXXXX XX XXXXX XXXXX? Automobile component section in South XXXXXX. </p> <p>X </p> <p>1. XXXXXXXXXX and Labor XXXXXXXX </p> <p>25. Increasing gainful XXX secure XXXXXXXXXX XXX always XXXXXX high as a policy objective for XXXXXXXXXX countries. It is a principal means XX achieve an equitable XXXXXXXXXXXX XX income and XXXXXX standard XX XXXXXXX for the XXXXXXXX of the population. Because XX XXX special features XX foreign investments – they XXXX XX XX XXXXXX in XXXX, with greater XXXXXXXXXXXXX XXXXXXXXXXXXXX, XXXXXX XXXX competitive XXXXXXXXX in their product XXXXXXX, XXX XXXXXX more room XX XXXXXXXX in XXXXX XXXXXXXXXX XX XXXXXXXX XX domestic XXXXXXXXXXX – FDI often XXXXX a XXXXXX XXXX in employment creation XXX XXXXXXXXX of XXX XXXX XXXXXXXXX. </p> <p>26. XXXXX XXX XXXXX XXXXX mechanisms XXX XXX to generate employment in XXX XXXXXXXXX XXXXXXXXX. XXXXX, foreign affiliates XXXXXX XXXXXX in XXXXX XXXXXXXX XXXXXXXXXX. XXXXXX, through XXXXXXXX and forward XXXXXXXX, employment XX created in XXXXXXXXXXX XXXX are XXXXXXXXX, subcontractors, or service XXXXXXXXX XX XXXX. XXXXX, XX XXX-related industries XXXXXX XXX XXX local XXXXXXX XXXXX, employment is XXXX XXXXXXX in sectors XXX activities that XXX not XXXX indirectly XXXXXX XX XXX XXXXXXXX XXX. </p> <p>27. XXXXXXXXXXXXX XXXX XXX XXXXXX with respect XX XXX XXXXXXXXXX generated by XXX in developing countries. Estimates put XXX XXXXXX employment created by XXXXXXX affiliates XX less XXXX two percent of the labor XXXXX in XXXX developing countries, XXXXXXXX the XXXXX XXXXX be XXXXXX XXXX XXXX formal XXXXXXXXXX is considered XXX it is often XXXXXXXXXXX in XXX XXXXXX manufacturing sector.10In XXXXXXXX, XXX example, FDI accounts XXX about XX XXXXXXX XX XXX total XXXXXXXXXXXXX XXXXXXXXXX in the XXXX XXXXX, as XXXX XX a growing share of new employment XXXXXXXXXX in the XXXXXX XXXXXXXXX XXX away from XXXXXXX.11Indirect XXXXXXXXXX created by foreign affiliates, by XXXXXXXX, can be large XXXXX XXX interaction XXXXXXX FDI and XXX local economy XX XXXXXXX. Based XX a series of XXXXX case XXXXXXX in both XXXXXXXXX and developing countries, one study XXXXXXXXX that when XXXX XXX XXXXXXXX employment XXXXXXXXX XX XXXXXXXX and forward linkages was considered, 1.6 jobs XXXX created XXXXXXXXXX XXX each job XXXXXXX directly XX a XXXXXXX affiliate.12 </p> <p>28. XXXXX XXXXXXXXXXXXX XXXXXXXXXX creation ranks XXXX in XXX XXXXXX agenda XX developing countries, XXXXXXXXXXXX XXX XXXX created through FDI preoccupies the XXXXXX XXXXXX with equal XXXXXX. Despite XXX popular XXXXXX that XXXXXXX XXXXXXXXX are attracted XX developing countries principally, or even XXXXXX, XX XXX XXX labor costs, XXXXXXXXX XXXXX XX the opposite. XX XXXX, XXXXX is XXXXXXX XXXXXXXXX that XXXXXXXXXXXXX XXXXXXXXX provide employment XX conditions that, XX XXX whole, XXXXXXX favorably XXXX the XXXXXXXXXX </p> <p>10UNCTAD,World Investment XXXXXX, 1994. 11Brimble, X. XXX X. XXXXXXX (1998). “the XXXXXXX XXXXXXX XX foreign XXXXXX investment on economic XXXXXXXXXXX in XXXXXXXX: XXXXXXXXX XXXXXXXXX.” XXXXX prepared for XXXX Level Roundtable on XXX and XXX Impact XX XXXXXXX XXXXXXXXXXX, December 1998. XXXXXXX, X and J. XXXXXX (1993). “Les XXXXXX XXXXXXXXX XXX XXXXXXXXXXX XXXXXXXXXXXXXXX sur l’XXXXXX XXX pays d’XXXXXXX. » ILO XXXXXXX Paper No. 72. </p> <p>XX </p> <p>XXXXXXXXX in XXXX XXXXXXXXX. In XXXXXXXXXX, well-established XXXXX multinational XXXXXXXXXXX are most XXXXXX XX comply with international labor XXXXXXXXX and XXXXXX XXXX labor XXXXXXXXX. XXXXXX, XXXXXXX of XXXXX XXXX, XXXXXXXXXXXXX sophistication, XXX XXXX to meet high XXXXXXX XXXXXXXXX, XXX exposure XX international XXXXXXXX, foreign XXXXXXXXXX have come XX XX expected XX XXXXX XXXXXX XXXXXXXXXXXX, XXXXXXXX XXXXXXX conditions, XXX more XXXXX upgrading XXXXXXXXXXXXX XX XXXXX workers than XXXXXXXX XXXXX. </p> <p>XX. In XXXXXXXX to technological spillovers, best XXXXXXXXXX practices can be XXXXXXXXXXX to host XXXXXXXXX when the foreign XXXXXXXXXX are XXXX integrated XXXX the XXXXX XXXXXXX. In XXXX respect, the cross-border XXXXXXXXX of modern organizational and managerial XXXXXXXXXX XXX the XXXX impact XX XXX XXXXXXX XXXXXXXXXX and XXXXX resource development styles of XXX XXXXXXXXX XXXXXXXXX. By creating a more efficient XXX more productive work pattern, XXX XXXXX XX set XXX XXXXXXXXXX norms and higher XXXXX XXXXXXXXX in the XXXXXXXX XXXXXXXXXX and XXXXXXXXXX. In China, for XXXXXXX, it was XXXXXXX foreign investments that a new form XX XXXXX-contract XXXXXX was XXXXX introduced in the early XXXXX, XXXXX linked remuneration XXX bonuses to XXXXX productivity. The new XXXXXX system was so successful that it XXXXXXXXXX XXX XX the country-wide XXXX and XXXXX market XXXXXXX. </p> <p>30. XXXXXXX, XX part of the XXXXX-border XXXXXXXX of its human resource management practices, FDI XXXX XXXXXX with it the kind XX XXXXXX industrial XXXXXXXXX XXXX XXX prevalent in XXXXXXXX countries.XXXX XXXXXXX, foreign XXXXXXXXX adapt XXXXX industrial relations systems to XXX XXXXXXXXXXXX XXX XXXXXXXXX of XXXXX host XXXXXXXXX. XX doing so, XXXXX XXXXXXXX to management-XXXXX relations is XXXXXXXXXX XX the XXXXXXXXX of XXX XXXX XXXXXXX governments. XXX global XXXXXXXXX of FDI, however, XXXXXXXX XXXX XXXXX XXXXXXX XXXXXXXXX may pursue XXXXXXXXX that XXXXXX in XXXX XXXXXXXX from XXXXX XX indigenous enterprises in a XXXX country. XXXXXXXXXXXXXXX, there is a broad trend XXXXXXX increased XXXXXXXXXXXXX between XXXXXXXXXX XXX XXXXXXX. XX multinational XXXXXXXXXXXX XXX typically XXXXX that invest in their workforce and deal with workers’ XXXXXXXXXXXXX XXXX a view towards XXXXXXXXXXXX an XXXXXXXXX relationship, XXXXXXXXXX XXXXXXXXX difficulties XX not XXXXX more XXXXXXXXXX in XXXXXXX affiliates XXXX in domestic XXXXX. Conversely, XX the extent XXXX XXXXX labor XXXXXXXXX are more consultative in XXXXXX owing XX XXXXX XXXXXXXXXXXXX experiences, their XXXXXXX XX industrial XXXXXXXXX often becomes a model for domestic XXXXX XXX XXXX XXXX of XXX labor force XXXX is not organized. </p> <p>X. XXXXXXXXXXXXX XXXXXXXXX </p> <p>31. XXX XXXXXXXXXXXXX degradation in XXXXXXXXXX countries XX XXX XXXXXXXX XXXXXXXXXXX XX the XXXXXXXXXX XXX XXXXXXXXXXX patterns XXXX within the XXXXXXXXX and in XXXXX export XXXXXXX. In a XXXXXXXXXX XXXXX economy, XXX XXXXXX XX these forces XXX XXXXXXXXX, with XXX XXXXXXX as another XXXXXXX. Nonetheless, XXXXX it is undeniable XXXX XXXXX XXXX been cases XXXXX XXXXXXXX companies XXXXXXXX polluting production XX countries or XXXXXXX out of XXXXXXXXXXXXXX of weak environmental standards, XXXXX XX no XXXXXXXXXX evidence that XXXX XX XXX XXXX. XXXXXXX, FDI flows to places where XXX XXX </p> <p>XXXXXX is XXXX relevant XXX investors XXXX West European countries. </p> <p>XX </p> <p>XXXXXXXXXXXXX is XXXXXXX, not where XXXXX XXX lowest. XXXX is why XXX only most of the world’s XXX flows to XXXXXXXXX XXXXXXXXX, where XXXXXX XXXXX XXX higher XXX social standards XXXX XXXXXXXXX, XXXXXXXXX data from the XXXXXX XXXXXX show that the XXXXX of pollution-XXXXXXXXX XXXXXXXXXX is the highest in developed XXXXXXXXX as XXXX.XXXXXXXXXXX, there is XX strong XXXXXXXX to support the XXXXXXXX XXXX XXX XX XXXXXXX XXXXXXXX on developing countries XX XXXXX their environmental XXXXXXXXX so XX not to lose investment XXX XXXX. </p> <p>XX. XXXXX XXXX XXXX XXXXXXX XXXXXXX XXXX XXXXXXX XX test XXX “XXXXXXXXX XXXXX” XXXXXXXXXX. XXXX the XXXXXXXXXXX XXXXXXXX, XXXXX examines XXX XXXXXXXXXXXX between XXXXXXX XXX and XXXXXXXXXXXXX standards XX XXXX countries, XXX the XXXXXXXX XXXXXX approach, XXXXX embeds environmental regulation as a determinants for XXX XXXXX, XXXX XX XXXXXXX XXXX hypothesis.15 XXXX in XXXXXXXX XXXX studies XXXX examples found XX sustain XXX XXXXXX that environmental standards XXXX a XXXXXX in FDI XXXXXXXX XXXXXXXXX. However, it should XX pointed out XXXX these case XXXXXXX XXXXXX from XXXXXXXXX bias because only firms that XXXX actually shifted location XXXX XXXXXXXXXX.16 </p> <p>33. Essentially, environmental resources are an input XXXX the XXXXXXXXXX XXXXXXX. XXX XXXXXX of industrial XXXXXXXXXX on XXX environment XX XXXX closely linked XX the XXXXXXXXXX XXXXXXXXXX of XXXXX XXX XXXXX capacity XX XXXXXX environmental risks. Environmental damage tends to be XXXXXXXX in XXX XXXXXXXXXXXX XXXXXXXXXX XXXX employ XXXXXXXX XXXXXXXXXX, XXXXXXXX XXXX XXXXXXX, poor human resource XXXXXXXXXX XXXXXXXXXX, XXX XXXXXXXXXXX energy XXX. In XXXX XXXXXXX, on XXXXXXX XX its XXXXXXXX technological and management XXXX, XXX XX XXXXXXXX better XXXXXXXXXX XX XXXXXX XXXXXX environmental XXXXXXXXX XXXX their XXXXXXXX counterparts. There is indeed some XXXXXXXX to show that XXX XXXXXXXX of foreign companies XXXXXX XXXXXX XXXXX than XX XXX XXXXXXX XXXXXXXX in XXX recipient XXXXXX. Rather, they XXXX to espouse XXXXXX environmental XXXXXXXXX XXX contribute to an XXXXXXXXXXX XX XXXXX XXXXXXXXXXX.XX </p> <p>XX. XXXXXXXXX, instead XX being XXXXXX XX a cause XXX the “XXXX XX the bottom” in developing countries’ effort to XXXXXXXX XXXXXX, XXX XXXXXX be viewed XX a force to XXXXX XXXXX better environmental XXXXXXXXX. XXXXXXX XX XXXXX connections XX XXX developed world, where affluent XXX environmentally XXXXXXXXX markets XXXX for stringent XXXXXXXXXXXXX XXXXXXXXXXX and environment-XXXXXXXX products, XXX XXX XXXXXX a XXXXXXX for transferring XXXXX XXXXXXXXXX XXX XXXXX environmental XXXXXXXXXX systems. </p> <p>14UNCTAD,World XXXXXXXXXX XXXXXX, XXXX. 15See Adams J. (1997), “Environmental policy and competitiveness in a globalized XXXXXXX: conceptual XXXXXX XXX a XXXXXX of the XXXXXXXXX XXXXXXXX”, in XXXX Globalization XXX Environment: XXXXXXXXXXX Perspectives; and XXXXXXXX G. and A. XXXXXXXX (1997), “Moving XX XXXXXXX pastures? XXXXXXXXXXXXX and the pollution haven hypothesis” XXX XXXXX XXXX, mimeo. XXXXXXXX XX. cit. 17See XXXXXXX, X. (XXXX),XXXXXXXXXXXXX XXXXXXXXXXXX, XXX XXXXXXXXXXX XXX the third world, North Carolina: Duke University Press; XXXXXXX, D. (1998),XXXXXXXXX XXX the struggle for XXX world XXXXXXX, XXXXXXXXX: Cambridge University XXXXX; Gentry, X. (ed.), (1998),XXXXXXX XXXXXXX XXXXX and XXX XXXXXXXXXXX: lessons XXXX XXXXX America,XXXXXXXXXX: XXXXXX XXXXX Publishing; and Wheeler , X. (XXXX), “Racing XX the bottom? XXXXXXX investment XXX XXX pollution in XXXXXXXXXX XXXXXXXXX,” mimeo, The World XXXX. </p> <p>12 </p> <p>C. Potential XXXXXXXX XXXXXXX XX XXX </p> <p>35. XX XXXXXXXX in XXXXXX in XXX discussions above, XXX XXX a XXX role XX play in XXXX XXXXXXXXX’ economic XXXXXXXXXXX. XXXX XXXX not mean, however, that XXX XXX XXXXX lead to undesirable outcomes XXXXX all circumstances. Indeed, XXXX with XXX best of intentions, XXX XXX sometimes XXXXXXX XXXXXXXXXXXXX results XXXX XXX harmful XX XXXX developing countries. XX is also XXXXXXXXXX that, rare XXXXXX they XXX, some XXXXXXX investments may be exploitive in XXXXXX XXX need to XX XXXXXXXX regulated. XXXX of XXX negative impacts XX FDI XXX reviewed in XXX XXXXXXXXX section. As XXXX be XXXX, in XXXX cases, XXXXX XXXXXXXX effects XXX a reaction XX the XXXXXXXXXXX and XXXXXXXXXXXXXX in XXX domestic XXXXXXX. XXXXXXXXX, they are XXXXXXXXXXX XXXXXXXXX with appropriate policy tools XXX a XXXXX regulatory framework. </p> <p>1. XXX “Crowding Out” Effect XX XXX </p> <p>36. XXXXXXXXXXXXXXX the XXXXXXXXX XXXXXXXX XXXX FDI usually results in XXXXXXXXXXXXXX XXXX XXXXXXXXXX XXXX XXXX can XX counted for by XXX XXXXX, XXXXX XX XXX XXXXXXXXX XXXXXXX that XXXXXXX XXXXXXXXXXX may XXXX away XXX investment opportunities of domestic firms, XXXXXXX driving XXXX out of business. XXXX a situation may XXXXX in either XXXXXXXXX XXXXXXX or XXXXXXX markets. If the foreign investor finances XXX project XX XXXXXXXXX XXXX the host XXXXXXX XXXXXXXXX market under conditions XX XXXXXX resources, domestic interest rates may XXXX as a XXXXXX, which may make XXXXXXXXX XXXXXXXXXXXX XXX some XXXXXXXX firms. XXXXXXXXX to prevent this XXXX XXXXXXXXX, Chile, a XXXXXXX with generally XXXXXXX XXXXXXXX towards XXX, XXX retained the right to limit the XXXXXX XX foreign XXXXXXXXX XX XXXXXXXX banking XXXXXX. XXXX though the XXXXXXXXX has never been XXXXXXX, its XXXX existence XXXXXXXXX to the XXXXXX XXXXX small developing countries XXXX XXXX XXXXXXXXX XXXXXXXX.18 </p> <p>37. XX FDI XXXXXX the XXXXXXX in activities in which XXXXXXXXX domestic firms already XXXXX, FDI XXX well reduce domestic investments that XXXXX XXXX XXXX undertaken XX XXXXXXXX XXXXXXXXX. XXXX in XXX XXXXXXXXXX beyond the current reach XX XXXXXXXX investors, XXX XXX preempt investments XX domestic firms which, with XXXXXX XXXXXXXXX, XXXXX enter XXX market successfully. The problem becomes XXX the more grave if XXX foreign XXXXXXXXXX deliberately uses predatory practices to XXXXX competitors out XX business, or XX retard their establishment. XXXXXXXXXX in XXXXXX XXXXX the host governments XXXX XXXXXXXXX XXXXXXXXXXX policy tools XXX skills XX XXXX such XXXXXXXX in XXXXX, a strong XXX presence may inhibit the development of local capacities. XX XXXX cases, crowding out by FDI does not XXXXXXXXXXX mean an XXXXXXXX XXXXXXXXX in XXXXX XXXXXXXXXX, XXX rather XXXX XXX XXXXXXXX is XXX XXXXXXXXXXXXX to FDI XXXXXXX. </p> <p>XX. XXXX XXXXX XXXXXXXX XXXXXXXX XXXX while crowding in or neutral XXXXXXX of FDI prevails, XXXXXXXX out is XXX uncommon XXXXXX. Much XXXXXXX XX the XXXXXXXX market </p> <p>XXXXXXXX op. cit. </p> <p>13 </p> <p>situation. In an econometric exercise carried out to XXXXXXXXXXX XXXX XXXXX, it XXX XXXXX XXXX neutral effects dominated in XXXX of XXX XXXXXXXXX, while crowding in XXX XXXXXXXX out occurred with equal frequency, taking XXXXX in 25 XXXXXXX XX the XXXXXXXXX XXXX.19A XXXXXXX conclusion is that whereas the XXXXXXXXX of crowding out cannot be ruled out, it XXXX XXX appear to XX the XXXXXXX XXXX. Equally inconclusive are XXX policy XXXXXXX to XXXX the problem. In Korea, XXX XXXXXXX, XXX XXXXXX to XXXXXXXX XXXXXXX investments in certain industries XXXXXX XXX XX XXX emergence XX XXXXXXXXXX XXXXXXXX XXXXXXXXX. In Brazil, however, the XXXX XXXXXX intervention in XXX 1980s proved XX XX XXX XXXX costly XXX with uncertain results. XXX XXXXXXX is thus XXXX instead XX XXXXXX to XXXXX XXX problem through “XXXXXXXXXXX”, i.e. prohibiting FDI from entering certain sectors, efforts should XXXXXXXXXXX on enforcing appropriate competition XXXXXXXX and the XXXXXXX regulations so XX XX XXXXXXX abusive practices in XXX domestic XXXXXXX. </p> <p>2. The Balance of XXXXXXX Problem XX a XXXXXX of FDI </p> <p>39. Another wide-spread concern regarding XXX is XXXX XX XXX extent XXXX profits XXX XXXXXXXXXXX, they constitute a financial XXXXXXX XXXX has to be set XXXXXXX XXX XXX annual contribution of XXX XXXXXXX XX a host XXXXXXX’s balance XX payment. This XXXXX was of considerable interest in XXX XXXXX 1970s, XXXX a majority XX XXXXXXXXXX XXXXXXXXX XXXXX XXXXXXXXX foreign exchange XXXXXXXXXXX. XXXX increased XXXXXXX and XXXXXXX accounts XXXXXXXXXXXXX in many XXXXXXXXXX countries, this is XXXX of a concern. However, as there XXX XXXXX a XXXXXX XX countries XXXX XXXXXXX XXXXXXX of foreign XXXXXXXX controls, XXX XXXXXXX of payment XXXXX remains relevant. </p> <p>40. XXXXXXXXXXXX, XXX XXXXXXX of the problem XXXXXXX to XX XXXXXXXXXX. Comparisons of repatriated XXXXXXXX and FDI XXXXXXX during XXX 1990s show that XXXX in XXXXXX, where the repatriation XXXXX XXX XXX XXXXXXX (an annual average XX 75 XXXXXXX), there XXX XXXXX a negative external XXXXXXX as a result of FDI. Moreover, several indirect effects XXXX to XX taken into XXXXXXXXXXXXX XXXX assessing the XXXXXXX of XXXXXXX XXXXXXX XX XXX. XX is often XXX case, FDI in XXXXX XXXXXXXXXX XXXXXXXXX XXXXXXX exchanges XXXXXXX exports, XXXXX XXXXXXX XXX XXXXXXXXX XXXXXXXX of XXXXXXXXXXX profits. XXXX XXXX XXXXXXXX in non-XXXXXXXX activities, XXX XXX XXXXXXX XXX XXXXXXXXXXXXXXX of tradable XXXXXXXXXX, XXXX contributing XX XXX overall export performance of XXX host country. Therefore, in XXX XXXX run, FDI should XXX XX a XXXXX for XXX XXXXXXX of payment XXXXXXX, XXXXXX in countries XXXX seriously misaligned foreign XXXXXXXX regimes. XX XXXX case, XXX real solution XX XXX XXXXXXXXXXX XXX, XXX XXXXXX addressing XXX foreign XXXXXXXX constraints XX the XXXXXXXXX. </p> <p>X. Enclave Economies Created by XXX </p> <p>XX. XXX most voiced XXXXXXX with XXXXXX to XXX XX undoubtedly that XXXX investments XXX narrowly XXXXX, XXXX limited overall impact XX XXX XXXXXXXXX XXXXXXXXX, XXX benefiting only a XXXXX group of XXX XXXXXXXXXX. Such XXXXXXXXX are most XXXXXXXXXXX by XXX XXXXXX and XXXXX raw material extraction projects, XXXXX XXX XXXXXXXXX very XXXXXXX intensive XXX </p> <p>19Op cit. </p> <p>XX </p> <p>XXXXXX a small XXXXXXXX of XXX national XXXXXXXXX. This means that few linkages, either backward or XXXXXXX, XXXXX XXXX the XXXX XXXXXXXXX, XXXXXX XXXXX indirect XXXXXXX on XXX domestic economy XXXXXXXXXX. To XXXX XXXXXX XXXXX, sudden XXXXX XXXXXXX XX foreign exchange XXXX to raise the XXXX XXXXXXXX rate of XXX XXXX XXXXXXX and thus XXXXXX XXXX non-XXXXXXXXXX XXXXXXXXXX XXXXXXXXXXXX (XXX Dutch XXXXXXX). XXXXXXXX, such projects XXXXX display XXX XXXXXXX retention for host XXXXXXXXX XXXXXXX a large XXXXXXXX XX XXXXXX earnings flow XXXXXXXXXXX XXXXXXXX to XXXXXXX the foreign capital XXXXXXXXXX.XX </p> <p>XX. Another XXXXXXX XX the XXXXXXX XXXXXXXXX XX XXX XXXXXX Processing XXXXX (XXXX), XXXXX XXXX XXXXXX a XXXXXXX strategy in developing countries to foster exports XXX XX XXXXXXX employment. XXXX the XXXX XXXXX of XXXXXXXXXX and special XXXXXXXXXX XXXXXXX XX XXXXXXXXXXX located in the XXXX, XXXX XXX exhibit very limited linkage XXXX the XXXXX XXXXXXXXX XX large. In particular, XXX labor costs XXX XXXXXXXXX XX XXXXXX rules XXX regulations XXX XXXXX XXX main XXXXXXXXXX sought by the XXX in such locations, XXX XXXX tend XX XX XXXXXXXXX and have XXXXXX XXXXXXXXX XX XXXXXXXX XXXXXX or XXXXXXXXXXXX. XXXXXXXXXXXX, even XXXXXX XXX immediate XXXXXX and XXXXXXXXXX benefits XXX undeniable, XXX long-term XXXXXXXXXXXXXX and economic XXXXXXX XX these zones XXX XXXX certain. </p> <p>XX. XXXXXXX, despite the XXXXXXX tendency XX mining projects and XXXX towards enclave XXXXXXXXX, this XXXX XXX have XX be the case and it is not XXXXXX XXXXXX for XXXXXXXXXX country XXXXXXXXXXX XX XXXX from XXX foreign XXXXXXXXXXX XXXX these activities. XXXX XXXX need XX do is to create the XXXXX incentives and proper environment XXX such investors XX XXXXXXX XXX scope of XXXXX XXXXXXXXXX. XX XXX XXXXXX XXX XXXXXXX XXXXXXXX projects, XXX XXXXXXX, XXXXX have been XXXXXXXXXX examples of countries XXXXX XXXXXXX to use XXXXXXX macroeconomic XXXXXXXX XX guard XXXXXXX XXXXXXXXX exchange XXXX appreciation XXX sound regulations XX minimize the opportunities of insiders for XXXXXXXXXX and to use the windfall gains XXX poverty XXXXXXXXXXX.XXXX many XXXXXXXXXX XXXXXXXXX, some of XXX XXXX XXX XXXXXXX XXXX “XXXXX” zones with a number of XXXXXXXXXX XX XXXXXX broader technology and XXXXXX XXXXXXXX XXXX XXXXXX and outside XXX XXXXX. </p> <p>XXX. The Determinants XX FDI Location </p> <p>XX. XXXX the rising XXXXXXXXXX of XXX in XXXXX XXXXXXX, XXXXXXXX attempts XXXX XXXX XXXX to XXXXXXX XXX factors XXXX explain XXX XXXX XXX location. As XXXXXXXX by XXXXXXX (XXXX), “The XXXXXX XX foreign direct investment XXX XXXX excelled XX XXX growth XX publications specially on the determinants XX these investments.”XXXXXX XXXXX XXXXX and XXX both XXXXXXXXX XXX XXXXXXXXXX countries, researchers have XXXXXXXX </p> <p>20See XXXX, X. X. (1993),Sustaining XXXXXXXXXXX in XXXXXXX economies: XXX XXXXXXXX curse XXXXXX, XXXXXX: XXXXXXXXX; and Sachs, J. XXX A. X. Warner (XXXX). “Natural resource XXXXXXXXX XXX economic growth.” NBER XXXXXXX Paper 5398. XXXXXX XXXXXXXX XXXXXXX XXXXXXXX, XXXXX, XXXXXXXXX, Malaysia, Mauritius, XXXXXX and XXXX. 22Agarwal, J.P. (1980). “Determinants of foreign direct investment: a survey,”Weltwirtschaftliches Archive, XXX. XXX. </p> <p>XX </p> <p>political, economic, social, XXX XXXXXX XXXXXXXXX in their search for “XXX XXXX important” XXXXXXXXXXXX XX XXX flows. XXX discussion XXXXX XXXXXXXXXXX XXX XXXXXXX XX this vast XXXXXXXXXX and summarizes the basic elements XX attractiveness XXXX draw foreign XXXXXXXXX to a XXXXXXX. </p> <p>XX.Market demand. XXX XXXXX XX XXX is XXXXXXXXXX XXXXXXXXXX XX the size of a XXXXXXX’s market demand as measured by GDP per XXXXXX. XXXX XXXXXXXX XXX casual XXXXXXXXXXX XXXX most XXX XXXXX to affluent XXXX XXXXXXXXX and it XX particularly XXXX XXXX XXXXXX-XXXXXXX XXXX XX FDI. Even in developing XXXXXXXXX, where XXX XXXXXXX XXXX to XX more input-seeking, a country’s XXXXXXX XXXXXXXXXXX level still has a XXXXXX XXXXXXX XX how XXXX XXX it attracts. </p> <p>46.Growth XXXX. FDI flows to where XXXX economic XXXXXX has XXXX recorded. X XXXXXXXX XXXXXX XX observed here: at XXXX XXXX that FDI XXXXXXXXXXX significantly to economic XXXXXX, faster XXXXXXXX growth XXXXXXXX XXXX XXX because it XXXXXXXXX foreign investors’ confidence in XXX XXXXXXX, which in XXXX XXXXXX the growth XXXX even higher. XX XXX least developed countries, studies XXXX XXXXX that XXX in XXXX XXXXXXX, XXX proceeds, some XXXXXXX growth or at XXXXX XXX promise of XXXXXX. </p> <p>XX.Political XXXXXXXXX. Quite XXXXXXXXXXXXXX, XXXXXXXXXX of political XXXXX, assassinations, XXXXX, or armed XXXXXXXXX XXX XXXXX a XXXXXXXX negative XXXXXXXXX XX foreign XXXXXXXXX’ XXXXXXXXXX XXXXXXXXX. XXXXXX, frequent changes of governments XXX the XXXXXXXXX policy changes can reduce an XXXXXXXX’s assets XX XXXX XXXXXXXXX. XX XXX absence of XXXXXXXXXXX reserves of XXXXXXXXXXXX natural XXXXXXXXX (e.g. XXX), XXXXXX would XXX foreign investors XXXXXX serious XXXXXXXXX risks or XXXXXXXX policy reversals. </p> <p>XX.XXXXXXXXXXXXX stability. X XXXXXXX’s XXXXXXX XXXXXXXXXXXXX performance, XXXX as XXX XXXXXXXXX XXXX XXX XXXXXXXX XXXXXX account, XX a consistently significant XXXXXX in shaping the decision making XX foreign XXXXXXXXX when assessing XXXXXXXXXX XXXXXXXXX. XXXXXXX XXXXXXXXXXXXX instability makes it difficult XXX investors XX XXXXXXXX the XXXX costs XXX XXXXXXX XX their XXXXXXXXXXX, only in XXXX XXXXX would XXX XXXXX to places XXXXX there XX hyperinflation or XXXXXX imbalances in their internal XXX XXXXXXXX positions. </p> <p>49.Infrastructure. With XXXXXXX XX FDI, XXXXXXXXXXXXXX encompasses both XXXXXXXX (e.g. roads and power) XXX social (e.g. XXXXXX XXX XXXXXXXXX) XXXXXXXX. It has XXXX repeatedly shown XXXXXX the XXXXX that a well-XXXXXXXXX infrastructure network XXX a XXXX-XXXXXXX XXXXX force are XXXXX elements of XXXXXXXXXXXXXX to XXXXXXX XXXXXXXXX. XXXX XX XXXXXXXXXX XXXX where XXXX XXXXXXX XXX (e.g. XXXX-XXXX XXXXXXXX of advanced technology) is concerned. </p> <p>50.Regulatory environment. It is increasingly recognized XXXX XXX administrative and regulatory XXXXXXXXXXX of a country can have a significant influence XX XXX level of FDI XXXXX. XXXXX XXXXX XXX powerful XXXXXXXXX may be able to XXXXXX XXXXXXXXXX and costly procedures, they may prove XXXXX to the entry and growth of XXXXX and medium XXXXXXXXXXX. Moreover, XXXXXXXXX, discriminatory, and non-XXXXXXXXXXX regulations XXXXX lead XX corruption, which has XXXX XXXXX to be a XXXXX deterrent to FDI. </p> <p>16 </p> <p>XX.XXXXXXXXXX promotion. Once a XXXXXXX XXX established a XXXXXXXXXX appealing investment XXXXXXX, how XXXX XXX it gets depends XXXX on its marketing XXXXXXX XX XXXXXXX foreign investment. XXXXXXX, no XXXXXX XX promotion XXX substitute for a XXXXX XXXXXXXXXX-friendly XXXXXXXXXXX, but when XXXXX factors XXX similar – XX it true in economies having XXXXXXXX a certain level of development – XXXXXXXXX XXXXXXX do XXXX a difference. </p> <p>XX. XX XXXX context, mention XXXXXX XX XXXX XX the XXXXXX incentive schemes that XXXX governments XXXXX XXXX XXXXXXX XX offer in order to attract FDI. There have XXXXXX XX XXXXXXXX of XXXX “tax heavens” which are XXXXXX XXXXXXXXXX XXXX XXXXXX multinational companies. Most economic XXXXXXX XXX XXXXXXX of international XXXXXXXXX, XXXXXXX, XXXX repeatedly shown that these XXXXXXXXXX are XXX XXXXXX as XXXXXXXXXXX in the XXXXXXXX decisions of XXXXXXX investors XX it XX XXXXXXX believed. That XX, XXXX though all XXXXXXXXX XXXXX XXXX the XXXXXX XXX XXXXXXXXXXX when it XX XXXXXXXX – just XXXX they XXXXX XXXXXX low XXXXXX costs XXXX all XXXXX XXXXXXXXXX are XXXXX - XXX XXXXXXX XXXXXXX discussed above are XXX XXXX XXXXXXXXX in XXXXX XXXX selections than XXXXXXX fiscal incentives. Whether investment XXXXXXXXXX are needed for a XXXXXXX XX XXXXXXX FDI and XXXX XXXXX of incentives to use XXXXXX largely on XXX XXXXXX of XXX prospective investors’ activities, their motivation for XXXXXXXXX XXXXXX, with XXXX the hosting country is XXXXXXXXX for these XXXXXXXXX, XXX if XXX XXXXXXX XXX XXX fiscal XXXXXXXX XX XXXXXXX XXX XXXXXXX XXXXXX and the administrative capacity to manage its chosen incentive regimes. Overall, global companies give XXXX XXXXXXXXXX to the XXXXXXXXXX XXX XXXXXXXXX of a country’s tax system than generous XXX rebates. </p> <p>IV. XXXX XX the XXXXXX XXXX To XX? </p> <p>53. The previous discussions highlight XXX role XX XXX in XXXXXXXX development – XXXXX XXX a panacea, it is a XXXXXXXX ingredient XX XXX XXXX term XXXXXXXXXXX growth. XXX XXXXXXXXXX XXXXXXXXX, it XXXXXXXX XXX XXXX effective XXX XX enhance productivity and to develop an XXXXXXXXXXXXXXX competitive XXXXXXX sector; it XXXXXXX XXXXXXXXXX and income opportunities; and it provides an important XXXXXXX XX XXXXX environmental XXX XXXXXX XXXXXXXXX. Many XXXXXXXXXX countries have XXXXXX XXXXX XXXXXXXX. But neither FDI nor XXX XXX benefits XXXX XXXXXXXXXXXXX. XXXXXXX XXXXXXXXX are fallible XXXXXX whose first and foremost objective XXX investing anywhere XX to XXXXXXXX their XXXXXX profits, with or XXXXXXX benefits XX host countries. XXXXXXXXXXX this simple business principle, it XX XXXXXXXX XX XXXXX out XXX good XXXXX of FDI XXX XXXXX its XXXXXXXX XXXXXXX. </p> <p>XX. XXXXXXXX, despite the XXXXXXXXXX XXXXXXXXX of XXX in economic XXXXXXXXXXX, it does XXX provide answers to all XXXXXXXXXXXXX XXXXXXXX. For XXXXXXX, XXXXX FDI helps XXXXXXX income levels, it cannot automatically reduce XXXXXXXX inequalities and XXX even exaggerate them in XXX XXXXX XXX XX putting a XXXXXXX XX XXXXXX with XXXXXX skills. XXXXXX XXXXXXXX XXXX to XX in place to support XXX XXXXXX segments XX society. XXX XXXX XX FDI in this process is, by virtue of XXX XXXXXX XX productivity and XXXXXX, XX generate the </p> <p>XX </p> <p>XXXXXXXXX XXXXXX to fund the government-XXX XXXXXXXX XXXX improve XXXXXX XXXXXX nets and provide basic social XXXXXXXX. XXXXXXXX, XXX delivery of social services to XXX poor – XXXX insurance XXXXXXX XX access XX XXXXX services XXXX XX XXXXX and XXXXXX – XXX XXXX benefit from reliance on XXXXXXX XXXXXXXXX. XX is XXXX XXXXXXXXXX for XXX national XXXXXXXXXXX XX create XXX pre-XXXXXXXXXX for XXX to flow in and work XXX XXXXXXX. </p> <p>55. The most XXXXXXXXXXX XXX- requisites XXX FDI are XXXXXXXXXX in the XXXXXXXX section. XXX governments XXXX XXXX to provide (i) XXXXX political XXX XXXXXXXXXXXXX XXXXXXXXX XXXX XXXXXX reasonable XXXXXXXXXXXXXX so XXXX XXXXXXXXX can XXXX XXXXXX business decisions; (ii) a XXXXX-XXXXX legal and XXXXXXXXXX environment XXXX facilitates XXXXX business XXXXXX XXXX XXXXXXXXX it; (XXX) an XXXXXXXX physical XXX social infrastructure XXXX assist the smooth functioning of XXX market XXX transferring XX knowledge; XXX (iv) XXXXXXXXXXX investment promotion efforts XXXX XXXXXXXXXXX information XXXXX the investment XXXX and service existing and XXXXXXXXX investors. </p> <p>XX. Beyond these XXXXX conditions, XXX XXXXXXXXXXX XXXX XXXX XXXX XX address several XXXXXXXX issues in order XX XXXXXX XXX realization of the XXXXXXXX XX XXX. They include:XX </p> <p>XX.An XXXX XXX competitive playing field.The benefits of FDI tend to be maximized when XXXXXXX investors XXXXXXX on an even and competitive playing XXXXX. To XXXX end, governments XXXX to provide a XXXXXXXX environment XXXXX XXXXXXXXXXX, XXXX entry, consumer choice and free exit determine who gains and who loses. XXXXXXX XXX XXXXXXXX XXXXXXXXX XXXX XX be XXXXXXX equally XX XXXX XX XXXXXXXX.XXXX amply XXXXXXXXXXXX in XXXXXXXX literature, XXXXXXXX XX effective competition XX an even playing field is the most important incentive XXX XXXXXXX and XXXXXXXX companies to XXXXXXX XXXXXXXXXX and management practices, while free entry XX the key to XXXXXXXXXXXX XXXXXXXXX XXXXXXXX between XXXXXXX investors and domestic XXXXXXXXX XXX XXXXXXXXXXXX that XXXX XXXXXXX XXXX XXXXXXXX in the XXXX XXXXXXX.XX </p> <p>XX.XXXXXXXX XXXXXXXX XX exploit FDI XXXXXXXX.A liberal and competitive XXXXXXXXXX climate creates the basis XXX XXX to XXXXX and XXXXX the potential XXX XXXXXXXXXXXX XXXXXX in the XXXX XXXXXXX, XXX XXXXXXXXXXXX will only XXXXX if the XXXXXXXX actors are capable XX responding XX XXX new XXXXXXXXXX. As XXXXXXXXX in the XXXXXXXX sections, XXX most serious XXXXXXXXX XX wider XXXXXXXXX XX best practice XX a lack XX XXXXXXXXXX capabilities XX take advantage XX XXX XXXXXXXXXXXXX. The XXX XXXXXX measures XXX thus XX XXXXXXX XXX education and XXXXXXXXXXXXXX so XX to XXXXXXXX the XXXXXXXX absorptive XXXXXXXX of the fruits of FDI. </p> <p>59.Building XX XXXXXXXXXXXXX and social XXXXXXXXX.As globalization gradually XXXXX to XXXXXX XXXXXXXXXXXXX XXX social standards XX FDI, XXXXXXXXXXX need to adjust XXXXX </p> <p>XXXXXX discussion draws XXXX XXXXX et al. (XXXX). XXXX XX XXXXXXXXXX that XXXXX XXX special features of FDI as XXXXXXXX to domestic XXXXXXXXXXX, differences in treatment are XXX entirely avoidable. XXX they XXXX to XX XXXX XX a XXXXXXX. 25The XXXXXXXX impacts of FDI are most often XXXXXX XX XXXXXXXXXXXXX XXXXXXXXX in the XXXXXXXX markets and XXXXXXXXX XXXXXXXXXXX XXXXXXX XX XXXXXXX XXXXX. XXX XXXX, S. and P. Streeten (XXXX),XXXXXXX investment, XXXXXXXXXXXXXX XXX XXXXXXXXXX countries, Westview XXXXX; and XXXXXX, E. H. (1995). “Foreign XXXXXX XXXXXXXXXX in the XXXXX XXXXXXX.” IMF Working XXXXX XX/95/59. </p> <p>18 </p> <p>own policies XX XXX XXXX the evolving XXXXX XXXX. In places where XXXXX XXXXXXX a wide gap XXXXXXX the XXXXX XXXXXXXXX and XXXXX of a host XXXXXXX, XXXXXXXXX foreign XXXXXXXXX may be forced to XXXX away out of XXXXXXXXXXXX XXXXXXXX or they XXX XXXX XXX much competition from domestic XXXXX XXX subject to XX XXXXXXXXX XXXXX. To be XXXX, XXXXXXX standards XXXX costs, XXXXX may affect both domestic XXXXX XXX certain XXX-XXXX-seeking XXX. Governments have XX XXXXXX how XX position themselves for the XXXX term benefits of XXXXX economic development. </p> <p>XX </p> <p>XXXXXXXXXXXX </p> <p>XXXXX X. “Environmental policy XXX XXXXXXXXXXXXXXX in a XXXXXXXXXX economy: XXXXXXXXXX issues and a XXXXXX XX XXX empirical evidence”, in OECD Globalization and XXXXXXXXXXX: Preliminary XXXXXXXXXXXX, 1997. </p> <p>Agarwal, J.P. “XXXXXXXXXXXX of foreign direct investment: a XXXXXX,”Weltwirtschaftliches XXXXXXX, Vol. 116, 1980. </p> <p>Aitken, X. and A. E. XXXXXXXX. “Do domestic firms XXXXXXX XXXX XXXXXX foreign direct investment? XXXXXXXX XXXX XXXXXXXXX”,The American Economic XXXXXX, Vol. XX, No. 3, 1999. </p> <p>XXXX, R. M.Sustaining development in mineral economies: XXX XXXXXXXX XXXXX thesis, London, Routledge, XXXX. </p> <p>XXXXXX, J. XXX X. Kaplinsky. “XXXXXXXXXXXXX XXX the XXXXX XX local XXXXX”. XXXXXXXXXX XXXXXXXXX XXXXXXX in South XXXXXX, XXXX. </p> <p>Barro, X.J. “Notes on growth XXXXXXXXXX,” XXXX Working Paper No. 6654, 1998. XXXXX X. and X. Tan.Interfirm linkages and XXXXXXXXXXXX growth: evidence </p> <p>XXXX Malaysian manufacturing,XXXXX, The World XXXX, Washington, D.C., XXXX. Borensztein, X. and J. W. XXX. “XXX does XXXXXXX direct investment XXXXXX economic </p> <p>XXXXXX?”, XXXX XXXXXXX XXXXX No. 5057, XXXX. </p> <p>XXXXXXX, P. and X. XXXXXXX. “XXX XXXXXXX impacts of XXXXXXX XXXXXX XXXXXXXXXX on XXXXXXXX XXXXXXXXXXX in Thailand: corporate responses”, 1998. </p> <p>XXXXXXX, S. and X. Hoekman. “XXXXXXX investment XXX productivity growth in Czech XXXXXXXXXXX”, Policy XXXXXXXX Working XXXXX 2115, XXX World Bank, XXXXXXXXXX, D.C., 1998. </p> <p>XXXXX, C and J. XXXXXX. “XXX XXXXXX indirects des XXXXXXXXXXX XXXXXXXXXXXXXXX sur l’XXXXXX XXX pays d’acceuil”, ILO XXXXXXX Paper No. XX, XXXX. </p> <p>Eskeland X. and A. Harrison. “Moving XX greener XXXXXXXX? Multinational and XXX evidence from Ghana, XXXXX XXX XXXXXXXX,” RPED XXXXX No. 81, The World Bank, Washington, D.X., XXXX. </p> <p>XXXXXX, X. (ed.).Private XXXXXXX XXXXX XXX the environment: lessons from XXXXX XXXXXXX,Cheltenham, XXXXXX XXXXX Publishing, 1998. </p> <p>XX </p> <p>Graham, X. X. “Foreign XXXXXX investment in XXX XXXXX economy.” XXX Working XXXXX WP/XX/59, XXXX. </p> <p>XXXXX, X., C. Aaron, and X. Hadjimichael. “Foreign XXXXXX XXXXXXXXXX and XXXXXXX XXXXXXXXX”, XXXXXX XXXXXXXX XXXXXXX Paper No. XXXX, The World Bank, Washington, D.C., 2001. </p> <p>XXXX, S. “XXXXXXXX XXXXX-firm XXXXXXXX in XXXX: an XXXXXXXXX study,”XXXXXX XXXXXXXX XX Economics and Statistics, Vol. 42, No. X on XXXXX, XXXX. </p> <p>Lall, S. XXX X. Streeten.XXXXXXX XXXXXXXXXX, transnational and XXXXXXXXXX XXXXXXXXX, XXXXXXXX Press, XXXX. </p> <p>Leonard, X.XXXXXXXXX XXX the struggle XXX the XXXXX product, XXXXXXXXX, XXXXXXXXX London, XXXXXXXXX, 1993. </p> <p>Maddison, A. “XXXXXX XXX XXXXXXXX in advanced XXXXXXXXXX ecibinues: techniques XX XXXXXXXXXXXX XXXXXXXXXX”,Journal XX Economic XXXXXXXXXX, Vol. XX, XXXX. </p> <p>Paper XXXXXXXX for High Level Roundtable XX XXX XXX its Impact on Poverty Alleviation, XXXXXXXX 1998. </p> <p>XXXXXXX, X.XXXXXXXXXXXXX XXXXXXXXXXXX, XXX environment and the third world, North Carolina, Duke XXXXXXXXXX Press, XXXX. </p> <p>Ramachandran, V. and M. X. Shah. “XXX effects of XXXXXXX XXXXXXXXX in XXXXXX: evidence XXXX XXXXX, XXXXX and Zimbabwe”, XXXX Paper No. XX, The XXXXX XXXX, Washington, D.C., XXXX. </p> <p>XXXXX, X. XXX X. M. XXXXXX. “XXXXXXX resource abundance and XXXXXXXX XXXXXX.” NBER Working Paper </p> <p>The XXXXXX XXXXXX Charter, 1944. </p> <p>XXXXXX,World Investment XXXXXX, XXXX. </p> <p>XXXXXX,XXXXX XXXXXXXXXX Report, XXXX. </p> <p>UNCTAD.World Investment Reporton XXXXXXXXX, XXXXXX and Thailand, 2000. </p> <p>Wheeler , X. “XXXXXX to XXX XXXXXX? Foreign investment and air pollution in developing countries”, XXXXX, XXX XXXXX XXXX, XXXXXXXXXX, D.C., XXXX. </p> <p>21 </p> <p> </p>">
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