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Challenges to GlobalizationAnalyzing the Economics$
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Robert E. Baldwin and L. Winters

Print publication date: 2004

Print ISBN-13: 9780226036151

Published to Chicago Scholarship Online: February 2013

DOI: 10.7208/chicago/9780226036557.001.0001

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Home- and Host-Country Effects of Foreign Direct Investment

Home- and Host-Country Effects of Foreign Direct Investment

(p.333) 9 Home- and Host-Country Effects of Foreign Direct Investment
Challenges to Globalization

Robert E. Lipsey

University of Chicago Press

This chapter presents a detailed analysis and appraisal of the empirical findings concerning the home- and host-country effects of foreign direct investment (FDI). It first summarizes the empirical evidence concerning the effects of FDI on home-country exports and on home-country factor demand, and then discusses wages, productivity, exports, and the introduction of new industries on the host-country side. A commentary is also included at the end of the chapter.

Keywords:   foreign direct investment, home country, host country, exports, factor demand, wages, productivity

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