Multinationals and economic growth in East Asia : foreign direct investment, corporate strategies and national economic development

Developing countries in East Asia recorded remarkable economic growth until the Asian financial crisis erupted in mid-1997. Although several countries experienced devastating setbacks, most of them recovered to achieve reasonable rates of economic growth over the next few years. Sound macroeconomic management, export-oriented policies, and the availability of skilled and low-wage labour are among the factors that contributed to the rapid economic growth before the crisis and the recovery thereafter. Especially noteworthy in this regard is the role played by foreign direct investment (FDI). This comprehensive book identifies the factors that contributed to the expansion of FDI inflows in East Asia and the factors that enabled recipient countries to utilize FDI effectively. It includes detailed case studies on China, South Korea, Taiwan, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. Also included is a comparative study of investing firms headquartered in the United States, Japan and Hong Kong. The authors conclude that social stability, clear and effective policy implementation and corporate governance are all key factors in reaping economic success from FDI.

Introduction 1. FDI Flows, their Determinants, and Economic Impacts in East Asia 2. Japanese Manufacturing FDI and International Production and Distribution Networks in East Asia 3. U.S. Firms and East Asian Development in the 1990s 4. Hong Kong as a Source of FDI: Experience and Significance 5. The Role of Inward FDI: A Case Study of Foreign Firms in the Republic of Korea 6. Inward FDI in Singapore: Policy Framework and Economic Impact 7. Firm-Level Productivity and FDI in Taiwan 8. Foreign Investment and Development: Indonesia's Experience 9. FDI Inflows and Economic Development: The Postcrisis Experience of Malaysia 10. FDI and Economic Development: The Case of the Philippines 11. The Experience of FDI Recipients: The Case of Thailand 12. FDI and Economic Development: The Case of Vietnam 13. The Experience of FDI Recipients: The Case of China 14. Liberalization, FDI Flows, and Economic Development: The Indian Experience in the 1990s