Working Paper

Attracting FDI in Middle-skilled Supply Chains

Authors

  • Theodore Moran
  • Holger Görg
  • Adnan Šerić
  • Christiane Krieger-Boden
Publication Date

While popular opinion often pictures FDI flowing in search of lowest-wage, lowest- skilled activities in emerging markets, actual FDI to such countries increasingly addresses medium to high-skilled manufacturing sectors. Such FDI might be called “Quality FDI” that contributes to the creation of decent and value-adding jobs, enhancing the skill base of host economies, facilitating transfer of technology, knowledge and know-how, boosting competitiveness of domestic firms and enabling their access to world-wide markets, as well as operating in a socially and environmentally responsible manner. To attract such quality FDI, host countries need mindfully tailored policies. Recent research offers evidence for strategies in developing countries that successfully turned FDI into such quality FDI.

Kiel Institute Expert

Info

JEL Classification
F14, F16, O24, O25

Key Words

  • developing countries
  • emerging countries
  • foreign direct investment
  • industrial policy
  • Industriepolitik