The Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexico
➤ Gửi thông báo lỗi ⚠️ Báo cáo tài liệu vi phạmNội dung chi tiết: The Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexico
The Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexico
The Missing Links between Foreign Investment and Development: Lessons from Costa Rica and MexicoEva A. PausProfessor of EconomicsMourn Holyoke College The Missing Links between Foreign Investment and Development Lessons from Costa Rica and MexicoeKevin GallagherAssistant Professor of International Relations Boston Universit}'Senior ResearcherGlobal Development and Environment Institute Tufts UniversityInternational Congress of the Latin American Studies Association San Juan, Puerto Rico, March 15-18, 2006Send comments to epaus@mtholyoke.edu The Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexico or kpg@bu.ed1https://khothuvien.cori!ABSTRACTA developing country will derive long-lasting development benefits from FDI only, if there is the rightThe Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexico
coincidence between its location-specific assets and TNCs’ global interests, and the right match between the country’s national linkage capability andThe Missing Links between Foreign Investment and Development: Lessons from Costa Rica and MexicoEva A. PausProfessor of EconomicsMourn Holyoke College The Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexicoumulative results of past development policies, proximity to the U.S., and trade arrangements. However, a combination of pervasive market failures, government inaction, and changes in TNC strategies explains why the two countries have not been able to reap lasting benefits from high-tech FDI. We con The Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexicoclude that pro-active government policies have to be an integral part of any FDI-linked development strategy. Pro-action is needed to attract FD1. toThe Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexico
promote indigenous linkage capability, and to enhance key location-specific assets on an on-going basis in the context of a coordinated policy framewoThe Missing Links between Foreign Investment and Development: Lessons from Costa Rica and MexicoEva A. PausProfessor of EconomicsMourn Holyoke College The Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexicot (FDI). They hope that FDI will provide a major impetus for economic development. At the macro level, they expect FD1 to increase investment, employment, foreign exchange, and tax revenue. And at the micro level, they envision FDI to generate positive spillovers through competition and the transfer The Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexico of technological know how. marketing and business practices.Helas, there is a wide schism between the expectations and the reality of the FDI-developThe Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexico
ment nexus. Some developing countries are unable to attract FDI at all, and for many of those that do, the anticipated benefits do not materialize. ThThe Missing Links between Foreign Investment and Development: Lessons from Costa Rica and MexicoEva A. PausProfessor of EconomicsMourn Holyoke College The Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexico) and Blomstroem, Kokko, and Globerman (2001) provide excellent surveys of the heterogeneity of econometric results.The widespread belief in a quasi-automatic FDI-development sequence is based on an erroneous understanding of real market conditions at the national and the global level. Contrary to t The Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexicohe neoclassical model-theoretic assumption that markets are perfect and complete, markets in developing countries are often riddled with imperfectionsThe Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexico
. In2the context ol pervasive market failures without corrective government action it is unlikely that developing countries will create the indigenousThe Missing Links between Foreign Investment and Development: Lessons from Costa Rica and MexicoEva A. PausProfessor of EconomicsMourn Holyoke College The Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexiconces in national linkage capability, lhey ate an important explanation for the mixed empirical results on the link between FD1 and economic growth and industrial upgrading.In tills article we focus on a detailed comparative case analysis to tease out the complex interactions between global and natio The Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexiconal, economic and institutional factors that determine the links between TĐĨ and development, a complexity that cannot be captured by econometric analThe Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexico
ysis. We analyze the FDT-development nexus in Costa Rica and Mexico, two countries which have been able to attract considerable amounts of high-tech FThe Missing Links between Foreign Investment and Development: Lessons from Costa Rica and MexicoEva A. PausProfessor of EconomicsMourn Holyoke College The Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexicondigenous knowledge-based assets because of the singular ability of high-tech production to advance indigenous technological capabilities through linkages and human capital spillovers. And the advancement of knowledge-based assets is the key factor behind a developing country’s ability to upgrade in The Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexicodustrial production and move up the value chain.Costa Rica and Mexico had the right location-specific assets to attract high-tech FD1. 1 hose assets wThe Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexico
ere not created overnight, but were the cumulative result of past investments in education and infrastructure, and the specifics of the countries’ polThe Missing Links between Foreign Investment and Development: Lessons from Costa Rica and MexicoEva A. PausProfessor of EconomicsMourn Holyoke College The Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexicoportant reason why high-tech rr>T has not provided a major impetus lor the expansion of indigenous knowledgebased assets. Tn the early 1980s, the foreign debt c risis bestowed extraordinary power on international organizations like the International Monetary rund and the World Rank to influence econ The Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexicoomic policies in highly indebted developing countries. Tt was in that context that Costa Rica and Mexico - like many other developing countries - putThe Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexico
much greater emphasis on free market policies, opening up the economy to more international trade and investment, and reducing significantly the role The Missing Links between Foreign Investment and Development: Lessons from Costa Rica and MexicoEva A. PausProfessor of EconomicsMourn Holyoke College The Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexicon reforming the active role that government played under import substituting industrialization (ISI), they eliminated it expecting that the market left to its own devices would generate the necessary momentum for growth and development.But Washington Consensus policies can pose serious obstacles for The Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexico the realization of the potential link between FDI and the advancement of indigenous knowledge-based assets. When indigenous producers have imperfectThe Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexico
information and face high financing costs, risk, or barriers to entry, they are not likely to compete successfully with TNCs. National and local goverThe Missing Links between Foreign Investment and Development: Lessons from Costa Rica and MexicoEva A. PausProfessor of EconomicsMourn Holyoke College The Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexico effectively with foreign investors and developing the national capability necessary to benefit from positive spillover effects. Furthermore, the drastic reduction of the role of the state in the economy reduced the very state administrative capacity that is needed for the conceptualization and impl The Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexicoementation of effective pro-active capabilitypromoting policies.The analysis in this paper is based on aggregate data from Costa Rica and Mexico, as wThe Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexico
ell as numerous in-depth interviews in TNCs and domestic firms, government officials, experts, and members of non-governmental negotiations. The paperThe Missing Links between Foreign Investment and Development: Lessons from Costa Rica and MexicoEva A. PausProfessor of EconomicsMourn Holyoke College The Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexicountries’ ability to attract high-tech FDI, and that shape the translation of FDI into an advancement of the host country’s knowledge-based assets. We use that framework to analyze why Costa Rica and Mexico were able to attract high-tech FDI (section three) and why that investment has not generated s The Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexicoignificant positive spillovers to date (section four). We conclude with the lessons from the Costa Rican and Mexican experiences for policies to transThe Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexico
late high-tech FDI into lasting development benefits.4https://khothuvien.cori!Analytical FrameworkIf free market policies and an open arms approach toThe Missing Links between Foreign Investment and Development: Lessons from Costa Rica and MexicoEva A. PausProfessor of EconomicsMourn Holyoke College The Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexico80s and 1990s. But that did not happen. A developing country will only attract FDI if its location-specific advantages at a particular point in time match the strategic interests of TNCs. Figure 1 summarizes the most important contingencies, which determine such a match.Generally speaking, stable pr The Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexicooperty rights, political stability, peaceful labour relations, cost advantages (wages, taxes, utilities, transportation, grants), and appropriate infrThe Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexico
astructure (especially transportation and telecommunications) are critical locationspecific assets. Proximity to major markets is an important advantaThe Missing Links between Foreign Investment and Development: Lessons from Costa Rica and MexicoEva A. PausProfessor of EconomicsMourn Holyoke College The Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexicoicient supply of the right human capital at competitive prices is of critical importance. The production of high-tech goods requires a labour force with the right technical skills and a fairly good command of English, even if the particular production process in the developing country' is at the low The Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexicoer end of the technology intensity for the high-tech good. Many of these location-specific assets are the result of the cumulative impact of past goveThe Missing Links between Foreign Investment and Development Lessons from Costa Rica and Mexico
rnment policies, and not of policy changes that bear fruit overnight.5Figure 1. High-tech FDI in Developing Countries: Critical ContingenciesSource: PGọi ngay
Chat zalo
Facebook