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[This chapter highlights on the impact the presence of foreign direct investments has in the sustainable development of emerging economies. It starts with introducing the OLI paradigm and technology as a determinant for economic development followed by the quantitative and qualitative effects emerging from the activity of foreign direct investment in the host territory. Additional areas covered in the chapter include the evolution of the subsidiary from upgrading in the operations and activities undertaken in the host territory together from the quality and the intensity of linkages established with local suppliers. The chapter continues with two opposing views on the impact foreign direct investment has in the developing path of the host territory categorized as the optimists and the pessimists. The chapter concludes with policies to attract and to foster upgrading in the manufacturing industry applied in various emerging economies.]
Published: Apr 8, 2020
Keywords: OLI paradigm; Knowledge transfer; Pool of suppliers; Subsidiary upgrading; Developmental linkages
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