2010 Student Research Conference:
23rd Annual Student Research Conference

Welfare Effects of Foreign Direct Investment
Lee M. Jones* and Steve J. Layton
Dr. Xiaofen Chen, Faculty Mentor

The purpose of this research is to show how developing countries FDI seeking behavior tends to bid down the positive externalities inherent in FDI as opposed to other forms of foreign investment. We take as given that firms from developed economies have significant management and technological advantages, which when invested in developing countries tend to diffuse through developing countries causing positive externalities. The tax incentives, land grants, long-term loans, direct subsidies and various other favorable treatments of foreign firms act to bid down the benefits to the country. Lee Jones Steve Layton

Keywords: Foreign Direct Investment, Welfare, Economics, Developing Countries

Topic(s):Economics

Presentation Type: Oral Paper

Session: 54-4
Location: MG 2090
Time: 3:30

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