Foreign direct investment (FDI) in developing countries has a bad reputation. In some discussions, it is presented as tantamount to postcolonial exploitation of raw materials and cheap labour. However, recent data shows that FDI in developing...

In theory, firms in developing countries benefit from viable, well-used, stable, and efficient local financial markets as a source of investment for local firms. Financial markets in the home countries of multinationals can also act as a source of...

In the run-up to WTO accession in 2001, China considerably liberalised its policy towards FDI. This column argues that foreign acquisitions contributed significantly to raising export activities and R&D activities, though rather through joint...

The positive spillovers from multinationals to the productivity of their host-country suppliers are empirically well established. Usually, it is assumed that multinationals aid their suppliers by voluntarily sharing knowledge and cooperating with...

Why are the prices of exports higher for countries that are further away – even when transport costs are excluded? This column suggests that this is partly because firms choose to ship out their best quality goods, just like a brewery with its...

Chinas Exporte boomen, und – was erstaunlich sein mag – nicht nur in arbeitsintensiv produzierenden Branchen. Peter Schott von der Universität Yale stellte in einem Kommentar fest, wie vielfältig Chinas Exportpalette doch sei, und das unter...