technology spillovers Archives — LIRNEasia

FDI bad for developing countries?

Posted on July 4, 2006  /  0 Comments

Our colleagues from Latin America have drawn our attention to the following article, perhaps because they think that our TRE (telecom regulatory environment) work is premised on FDI being an unmitigated good. We welcome the opportunity for a debate. Kevin P. Gallagher and Lyuba Zarsky, “Rethinking Foreign Investment for Development”, Post-Autistic Economics Review, issue 37 Abstract “In the 1990s, foreign direct investment (FDI) came to be seen as a “miracle drug”—a jumpstart to economic growth and sustainable industrial development, especially in developing countries. Policies to attract FDI became the centerpiece of both national development strategies and supra-national investment agreements.