Parental Supervision: The New Paradigm for Foreign Direct Investment and Development Book

	Preface	ix
	Acknowledgments	xiii
	Introduction	1
1	The Product Cycle Model of Foreign Direct Investment, Multinational Corporate Strategy, and Parent Control	3
2	Operations That Fit into the Product Cycle Model of Control and Supervision	7
	Characteristics of the Affiliates Themselves	7
	Backward Linkages	15
	Spillovers and Externalities	24
3	Operations That Do Not Fit into the Product Cycle Model of Control and Supervision: Investments with Domestic-Content, Joint-Venture, and Technology-Sharing Mandates Imposed by the Host	31
	Characteristics of the Affiliates Themselves	32
	Backward Linkages	38
	Externalities	40
4	Implications for Measuring the Impact of Foreign Direct Investment on Development	41
	The Dangers of Mismeasuring the Impact of Foreign Direct Investment	41
	Appraising the Impact of Foreign Direct Investment on Host Countries Within the Context of Endogenous Growth Theory	44
	Estimating the Impact of Rationalization and "Derationalization" of Production by Multinational Firms Across Borders	49
	Assessing the Spread of Backward Linkages from Foreign Affiliates to Local Suppliers	53
	Evaluating Spillovers and Externalities from Foreign Investors to the Host Economy	55
5	Policy Implications for Host Authorities	61
	Implications for Host Country Policies Toward Foreign Direct Investment	61
	Implications for Host Country Policies Toward Trade-and-Investment Negotiations	63
	References	67
	Index	75
	Tables
Table 4.1	Alternative estimates of the impact of investment liberalization	58
Table 5.1	Schematic comparison of foreign affiliates closely integrated into the parent's global sourcing network with foreign affiliates that are not	62