Work

Facts and Fallacies About Foreign Direct Investment

Year: 1998

Type: preprint

Abstract: This paper begins with a summary of the major trends in foreign direct investment over the 1980-1995 period. Following that we present five fallacies, dealing with: the magnitude of foreign investment in Japan; the impact of FDI on the U.S. and Japanese trade balance; the extent to with multinational corporations control U.S. trade; the impact of exchange rate movements on foreign investment flows; and finally, the impact of FDI on welfare of the host country. The paper concludes with a further analysis of the recent trends in foreign investment, and their implications for the competition faced by U.S. firms on international markets.

Source: RePEc: Research Papers in Economics

Author: Robert C. Feenstra

Institutions: National Bureau of Economic Research, University of California, Davis

Language: English

Topic: International Business and FDI

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W1487982041

Cites: 22

Cited by: 59

Related to: 10