FDI and Development: Policy and Research Issues in the Emerging Context

This paper is a general review of the emerging policy and research issues in the current context of rapid technological change and policy liberalization. It deals with the benefits and costs of FDI to development and the market failures that affect their impact on developing host countries. It focuses on the impact of FDI on local enterprise development, static versus dynamic benefits and bargaining with TNCs. It ends with a brief catalogue of outstanding research issues.