Rethinking FDI-based development in the post-global crisis era

Abstract

An increasingly significant factor in influencing MNE location decisions is the presence of sophisticated, created assets (in the form of developed human capital and domestic firms’ technological capabilities) in host countries. Therefore, public authorities and researchers alike must pay careful attention to the policy context within which FDI occurs, to determine whether the investment projects are likely to prove beneficial—or detrimental—to development. can be promoted by fostering credit/loans and capacity building programs to improve their bargaining power. Intellectual property right agreements between host countries and foreign investors can also be strengthened to ensure domestic technology transfer and skills development are better incorporated.