This paper analyses the evolution of India's FDI position during the post-independence period in comparison with government policy and levels of industrialization and development. Since independence, India has pursued a strategy of industrialization with active governmental intervention....

Many developing countris now actively solicit foreign investment, offering income tax holidays, import duty exemptions, and subsidies to foreign firms. One reason for subsidizing these firms is the positive externalities as foreign technology is transferred from foreign to domestic firms. This...

This chapter reviews the available evidence on the linkages between trade reform, labor markets, and FDI. We begin by drawing on studies of sixteen countries that underwent trade reforms in the 1980s and 1990s. These sixteen countries were chosen because of their inclusion in the United Nations...

In an effort to shed some light on the larger question of labor standardsvand globalization, we seek to examine compliance with minimum wage legislation in Indonesia. Indonesia is an ideal case study because the govern ment made minimum wages a central component of its labor market policies in...

This paper discusses different forms of international inter-firm linkages for transfer of technology, capital and other resources, e.g. foreign direct investment, licensing and other contractual modes, strategic alliances and internationalization of developing country enterprises. The paper...

Flows of foreign direct investment (FDI) are increasingly being seen as a very important channel for the transfer of technology, capital and entrepreneurship. Developing countries compete vigorously among themselves to attract greater volumes of FDI with a variety of policy instruments. This...

FDI flows originating in developing countries have evolved in terms of increasing magnitudes as well as in terms of their motivations. In the initial round, developing country FDI were essentially horizontal in nature, generally destined to other developing countries seeking markets. Using case...

In this chapter we explore the popular but controversial idea that developing countries benefit from abandoning policy neutrality vis-a-vis trade, FDI and resource allocation across industries. Are developing countries justified in imposing tariffs, subsidies, and tax breaks that imply...