While foreign direct investment (FDI) by multinational corporations (MNCs) has become increasingly important in economic growth since the early 1990s, empirical studies on the role of host-country markets, a key determinant of FDI flows, have been limited. This paper seeks to close this gap by...

A model of North-South multinational enterprises (MNEs) is constructed in which both horizontal and vertical MNEs anse endogenously. While honizontal MNEs are more active when host countries become more similar in national income and human capital, vertical MNEs are encouraged by cheap unskilled...

Does inward foreign direct investment (FDI) promote economic growth in China? This study extends the previous studies on the issue by assessing empirically to what extent FDI inflows have contributed to China’s outstanding performance of income growth in the period 1986-97. A model of...

This study first provides several extraordinary characteristics of the boom of foreign direct investment (FDI) fiows into China. These include the massive predominance of investment from Asian developing economies, especially Hong Kong, and the different sectoral and geographical distributions...