Increasingly, developing countries embrace foreign direct investment (FDI) and simultaneously pursue economic integration with developed countries. Foreign investment is subject to sovereign risk and it has been suggested that free trade agreements may serve as a commitment mechanism in order to...

The development process can advance more rapidly than ever before in the new global economy. While opening their economies to trade and investment is a necessary condition for developing countries to achieve sustained high growth and reduce poverty, it is by no means a sufficient condition....

Having already been growing in importance for a number of years, geopolitics as it relates to the Global South has become tremendously more relevant following Russia’s aggression in Ukraine in 2022. Rivalries with China are set to become even more influential in future, determining...

This paper examines empirically whether Aid for Trade (AfT) programmes and Foreign Direct Investment (FDI) inflows affect export upgrading and, if so, whether their effects are complementary or substitutable. Export upgrading entails export diversification (including overall export...

Does official aid pave the road for private foreign investment or does it suffocate private initiative by diverting resources towards unproductive activities? In this paper we explore this question using data for a large number of developing and emerging economies. Controlling for countries'...

Global demarcations exist between development aid and foreign direct investment. Rigorous statistical analysis that contrasts the relative homogeneous and heterogeneous influences of time-series panel data allows regions in the developing world to define themselves endogenously. The results...

Recent data advances have opened exciting new avenues for analyzing the political economy of foreign aid. Recent papers have looked at the social, environmental or welfare implications of aid. This paper, however, combines geo-referenced data on foreign aid with a similarly coded dataset of FDI...

The notion that foreign aid and foreign direct investment (FDI) are complementary sources of capital is conventional among governments and international cooperation agencies. This paper argues that the notion is incomplete. Within the framework of an open economy Solow model we show that the...