Employment and Foreign Investment: Policy Options for Developing Countries.

The recent rapid growth of transnational corporations (TNCs) has been most striking in newly industrializing countries, virtually ignoring least developed countries. Today developing countries generally must secure their comparative advantage by offering TNCs the skilled labor, reliable infrastructure and local suppliers required by competitive, high-technology activities. The author examines how developing countries can enhance employment and skill creation through foreign direct investment and analyzes the nature of its effects on employment in host economies. Drawing on the experience of East Asian newly industrialized economies, he argues that it is possible to maximize the benefits and mitigate the negative effects of foreign investment through appropriate policies